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

CRU: Dollar and bond yields rise, metal prices fall as Trump wins election

Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.