Economy
Chicago Business Barometer declines further in November
Written by Brett Linton
November 27, 2024
The Chicago Business Barometer continues to indicate deteriorating business conditions in November, easing to a six-month low, according to Market News International (MNI) and the Institute for Supply Management (ISM).
The Barometer reading slipped 1.4 points from October to 40.2 in November. Recall that in September it rose to the second-highest reading of 2024. A barometer reading above 50 indicates improving business conditions, while a reading below that indicates contraction.
October marks the 11th consecutive month the Barometer has been in contraction territory.
The index has averaged 42.9 in the first 11 months of this year. The Barometer has only indicated expansion for one month in the past two years (November 2023).
The MNI report attributes declines in November in four of the subcomponents: production, order backlogs, employment, and supplier deliveries. The only subcomponent to improve over October was new orders.
Special questions
Respondents were asked two special questions in this month’s survey, which ran from Nov. 1 through Nov. 15.
Q: Over the past three months, how has your ability to pass on input costs changed?
A: The majority (55%) reported no change in their ability to pass on costs. Just over 44% said they were less able to or somewhat less able to do so. The remaining respondents indicated a somewhat greater ability.
Q: Has there been a change in levels of inventories beyond seasonal norms to offer protection from further supply chain disruptions?
A: Most respondents (73%) stated that their inventory levels are either in line with seasonal norms or lower due to demand concerns. Only 18% reported a slight increase in inventory, while 9% said they were unsure.
View the full release here.
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.