Economy
Chicago Business Barometer Moves Out of Contraction
Written by Sandy Williams
September 3, 2019
The Chicago Business Barometer rose six points in August after two months of contraction. The Index posted a 50.4 last month, compared to 44.4 in July.
MNI Indicators still sees an overall softening in business conditions despite the gains in August. The three-month moving average, a better indicator of conditions, fell to 48.2
Supplier deliveries and Inventories declined in August. Deliveries dropped sharply from 55.6 in July to 50.3 in August. Inventories dropped 11.2 percent to 47.9, indicating destocking by firms.
Production was still muted despite gaining 6.7 points. New orders pulled out of contraction and back into expansion territory.
Factory gate prices rose 3.7 points to a five-month high of 59.8, but were still far from reaching the 12-month high of 79.8.
Sixty-three percent of firms surveyed expect no change in business investment plans for the rest of the year, 27 percent are planning increases and 10 percent reductions. Global uncertainty was cited as the main current concern.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Fed indicators show continued stability in manufacturing
Recent Federal Reserve data indicates that the US manufacturing sector remains healthy and stable. The strength of the manufacturing economy has a direct relationship to the health of the steel industry.
January energy market update
In this Premium analysis we cover North American oil and natural gas prices, drilling rig activity, and crude oil stock levels. Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products.
New York state manufacturing fell in January
“Price increases, while subdued, picked up,” Richard Deitz, Economic Research Advisor at the New York Fed. “Firms grew more optimistic that conditions would improve in the months ahead.”
Beige Book shows mixed economic trends, manufacturing challenges, tariff concerns
Economic activity across the US experienced slight to moderate growth at the end of 2024, while manufacturing activity showed a slight decline
Contractors concerned about tariffs, immigration in 2025: AGC survey
AGC said Trump should be “sparing” in imposing new tariffs and exclude products needed for domestic manufacturing, energy and infrastructure.