Economy
Chicago Manufacturing Index at Recession Level
Written by Sandy Williams
April 30, 2020
The Chicago Business Barometer dropped to its lowest level since the recession in March 2009. The April PMI plummeted 12.4 points to 35.4, said MNI Indicators.
New orders and production recorded the steepest declines, falling 21 points and 19 points, respectively. The order backlogs index eased 7.4 percent after reporting gains in February and March.
“April’s 21-point drop in new orders was the largest decline on record as firms noted a severe negative COVID-19 impact on both demand and production,” said MNI.
The inventory index remained in contraction for the ninth month, but rose by 39.4 percent. Disruption to supply chains was indicated by the supplier deliveries index surging to its highest level since April 1974.
Factory gate prices fell 14.6 percent to its lowest index level since March 2016. Manufacturing employment also plunged in April, falling 11.1 points to its lowest level since June 2009.
Responses to a special survey question revealed that 96 percent of firms in the Chicago region had made major, or at least some, changes to mediate supply issue problems amid the coronavirus crisis.
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 us at info@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.