Economy
Chicago PMI Rebounds in July
Written by Brett Linton
July 30, 2021
The Chicago Business Barometer rebounded in July to a reading of 73.4, the second highest pandemic-era level, according to MNI Indicators. The July PMI is up 7.3 points over the month prior. MNI reports that demand is strong, but firms remain concerned about supply chain disruptions and rising prices.
Production rose ;8.8 points in July as demand remained high and some firms benefited from supply chain issues. New orders also signaled strong demand, increasing 5.4 points.
Order backlogs advanced 3.4 points due to a lack of raw materials and warehouse personnel. Inventories rose 5.1 points in July, although they remain in contraction for the fourth consecutive month.
Demand for labor increased 3.4 points in July, while supplier deliveries remained flat (still at the highest level since 1974). Firms noted that delivery delays and a lack of workforce availability remain problems.
Prices paid at the factory gate eased slightly, but remained at a historic high. Higher prices for materials and freight were a major concern for survey respondents.
MNI asked firms, “What is your planned business activity growth forecast for the second half of 2021?” The majority expected growth to be between 5-10%.
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 into or navigating the website, please contact us at info@SteelMarketUpdate.com.
By Brett Linton, Brett@SteelMerketUpdate.com
Brett Linton
Read more from Brett LintonLatest 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.