Economy

Chicago Business Barometer Surprises with Six Point Gain

Written by Sandy Williams


The Chicago Business Barometer rose 6 points to 52.3 in April, beating analyst expectations for a reading of 50. The index fell to a five and a half year low in February before bouncing up five points to 46.3 in March.

The index grew in four of its five components in April with New Orders gaining by double digits. Order backlogs rose strongly but remained under the 50 neutral point. Gains were made in production and employment, which was at its highest level since January. Lead times for supplier deliveries shortened for the second month while days to source production material rose for the second month.

MNI Indicators reports that comments from service centers were more positive than manufacturers.

Inventories of finished goods were down slightly in response to the increase in orders. Prices paid contracted at a faster rate.

“The bounce back in activity at the start of Q2 is consistent with a resumption of normal activity following the poor weather and port strikes earlier in the year. In percentage terms, the April jump is similar to last year, although the level of activity is lower overall, “said MNI Indicators Chief Economist Philip Uglow.

Latest in Economy