Chicago Business Barometer™ - Dropped to 41.6 in October
MNI (LONDON) - The Chicago Business Barometer™, produced with MNI, dropped 5.0 points to 41.6 in October after edging up for two consecutive months, making the barometer the lowest since May 2024, and 1.6 points below the year-to-date average.
FOUR OUT OF FIVE SUBCOMPONENTS FELL
The decline was due to four out of the five subcomponents falling (Production, New Orders, Order Backlogs and Employment), with only Supplier Deliveries rising in October.
Production fell 7.8 points to 39.0. This is significantly below the year-to-date average of 44.8 and the lowest reading since April 2024. This was due to nearly 40% of respondents reporting lower production – the highest proportion since June 2023.
New Orders dipped 4.6 points, to the lowest level since May 2024.
Order Backlogs more than reversed last month’s rise, reducing 8.5 points, also the lowest since May 2024. This was due to nearly half of respondents reporting smaller backlogs.
Employment decreased 5.5 points to 39.0, taking it below the year-to-date average of 41.9 and a little below August’s 39.5. This was due to over 90% of respondents reporting same or smaller employment.
WHILST SUPPLIER DELIVERIES ROSE
Supplier Deliveries extended 6.2 points. This makes the print the highest since September 2022.
Prices Paid, softened 7.0 points to 67.3, after reaching the highest level since August 2023 in September.
Inventories fell for the second consecutive month by 2.9 points.