Economy
Chicago Business Barometer at 11-Month High in November
Written by Sandy Williams
November 30, 2018
The Chicago Business Barometer jumped 8.0 points in November to an 11-month high of 66.4. Business was booming as new orders rose to their highest level since May 2014 and output increased for the second straight month.
“The MNI Chicago Business Barometer clipped a run of three consecutive declines in emphatic style in November, boosted primarily by resurgent orders – stronger than typically seen at this time of year and enough to push the Barometer to its best level since December,” said Jamie Satchi, economist at MNI Indicators.
“However, many firms reported seeing the effects of higher China tariffs on their invoices for the first time and voiced concern that business could be stifled going forward,” he added.
Supply issues continued during the month, driving the supplier deliveries index to its highest levels since April 2004. Firms cited delays in receiving material from offshore suppliers. The inventory indicator slipped to a three-month low in November after two months of stocking up in preparation for the holidays and to protect against higher prices from further trade disruptions. Higher demand resulted in an a four-month high for the orders backlog index.
Employment levels increased in November, but firms continued to report difficulty finding qualified labor. When asked if labor issues would impact their business in 2019, 42.6 percent of firms said no, but 36.2 percent said issues were likely to occur. The remainder of respondents were unsure.
The price indices remained elevated last month with prices paid in the historically high range. “Some firms reported an increase in costs across a range of goods, while others said they were in the process of renegotiating contracts,” said MNI Indicators.
Below is a graph showing the history of the Chicago Business Barometer. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging in to or navigating the website, please contact Brett at Brett@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
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.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.