Economy
Chicago PMI retreats in March
Written by Brett Linton
April 1, 2024
The Chicago Business Barometer slipped to a 10-month low in March, according to Market News International (MNI) and the Institute for Supply Management (ISM). The March Purchasing Managers Index (PMI) reading eased 2.6 points to 41.4, marking the fourth consecutive month it has been in contracting territory.
Their latest report credits this downward move to a reduction in order backlogs, new orders, production, and supplier deliveries, while an increase in employment slightly dampened the decline.
Order backlogs saw double-digit declines from February to March, now at the third-lowest reading recorded in the past 15 years. The MNI report notes that more than 50% of those surveyed saw smaller backlogs in March.
New orders fell to a six-month low, with numerous survey respondents experiencing a slow period. Supplier deliveries and production both eased to multi-month lows.
Employment saw a rebound in March following the previous month’s low, now in line with January levels. The release credits this increase to “the greatest proportion of respondents reporting higher employment and the lowest proportion reporting lower employment since November 2023.”
Inventories slipped to a two-month low, citing restocking delays due to limited raw material availability.
Respondents were asked two special questions this month:
- The first asked if they were considering automation/artificial intelligence/digital technology improvements this year. There was an even yes/no split between respondents.
- The second asked when they were planning to make their next major capital investment for growth. The majority (39%) were unsure, while 19% said the second half of this year, 12% said next year, and 12% said within the next two years.
Brett Linton
Read more from Brett LintonLatest in Economy
New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey
Construction adds 13,000 jobs in March
The construction sector added 13,000 jobs, seasonally adjusted, in March, but tariffs could undermine the industry.
Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them
ISM: Manufacturing expansion loses steam after two months of growth
US manufacturing activity slowed in March after two straight months of expansion, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Chicago Business Barometer rose to 16-month high in March
The Chicago Business Barometer increased for the third-consecutive month in March. Despite this, it still reflects contracting business conditions, as it has since December 2023.