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
Architecture firm billings remain down in January
Architecture firms continued to report a sharp reduction in billings in January, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
New York state manufacturing rebounds in February
Business activity in New York state’s manufacturing sector recovered nicely in February after a sharp decline the previous month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. The general business conditions index rose 18 points to 5.7. This is a diffusion index, where a positive reading signifies […]
Dodge Momentum Index jumps to record high in January
The Dodge Momentum Index (DMI) rose to a record high in January, according to the latest data released by Dodge Construction Network.
CRU: China hits back with retaliatory tariffs on US
Targets include coal, liquified natural gas, crude oil, and other commodities
ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.