Chicago Business Barometer Dips to 56.0 in June, follwoing last month's recovery to 60.3.
The Chicago Business BarometerTM, produced with MNI, tumbled to the lowest since August 2020 in June, giving back last month’s recovery.
The indicator has been bouncing between readings in the mid-50s and low 60s since the beginning of the year, as the Chicago business community experiences volatile conditions. All main indicators decreased except for employment, which hit the highest level since November 2021.
PRODUCTION SLOWS AS NEW ORDERS PLUNGES
Production slowed 5.7 points in June, 4.7 points below the 12-month average. Firms cited waning demand and slowing production.
New Orders saw the largest decrease this month, dropping 9.8 points to 49.9, the lowest in two years. A quarter of firms saw fewer new orders received in June.
Order Backlogs saw the second-largest decline, falling 9.4 points to a 19-month low of 55.2. As new orders fell, backlogs saw a substantial decrease.
Supplier Deliveries edged down 0.2 points to 69.1. This was again the lowest since November 2020 as deliveries remained slow and lead times lengthened. Offshore supply lead times were reported at double that of domestic, however, some materials became substantially more available due to lower demand.
Inventories dipped 5.2 points to 63.9, coming off last month’s near 50-year high. With some supply chain issues easing, pressures to stock up saw slight relief.
Employment rose 4.6 points to 50.7, the highest since November last year as firms saw relatively stable employment conditions for the month with three quarters holding the same number of employees and encountering fewer departures than before.
Prices Paid eased 9.0 points to 79.6 to the lowest reading since February 2021. 13% fewer firms saw higher prices in June compared to May.
The survey ran from June 1 to 20.