Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Key Points – December 2022 Report
The Chicago Business Barometer™, produced with MNI, increased by 7.7 points to 44.9 in December. This month’s recovery broke a three-month streak of falls, yet the index remained contractive for a fourth consecutive month.
- The majority of sub-indexes improved over the month, led by Order Backlogs and New Orders whilst upticks in Production and Supplier Deliveries were more muted. Inventories, Employment and Prices Paid all weakened and only Order Backlogs, Supplier Deliveries and Prices Paid were above 50.
- Production rose by 3.3 points in December, improving from November’s 29-month low. Material and staff shortages were cited as hampering production, which remained below the 50-breakeven mark since September.
- New Orders jumped by 13.4 points, the highest since August. A number of last-minute and year-end blanket orders has provided a solid December boost.
- Order Backlogs saw the largest December increase, rising by 17.6 points, giving back more than the November fall. Order Backlog levels are now again in line with the 12-month average of 54.4, due to the unanticipated boost in December orders coupled with continued shortages.
- Employment weakened by 6.3 points in December, the second lowest level since H1-2020 and only marginally above the September low. Firms struggled to replace employees that had retired or changed workplaces.
- Supplier Deliveries rose by 2.8 points, as improved response times were experienced.
- Inventories fell by 11.8 points to a five-month low as firms continued to normalize stock levels.
- Prices Paid eased a further 2.1 points in December, the lowest since September 2020. The index has followed a general downward trajectory since November 2021. Some firms are expecting higher labor costs, whilst others highlighted lower demand and falling oil and steel prices pushing prices down. Firms are actively pushing back against higher supplier pricing plans.
SPECIAL QUESTION
We asked firms how they see their capacity utilization rate in this year’s lead-up to the holiday season compared to last year. 26% of respondents see capacity utilization at 90%, 21% see it at 80% and 18% at 75% capacity utilization. Close to 12% of firms see production slowing to less than 70% utilization, whilst 18% of firms were unsure as outlooks remain clouded. Only 6% anticipate 100% capacity utilization
Click below for the full press release:
MNI_Chicago_Press_Release_2022-12.pdf
For full database history and full report on the Chicago Business Barometer™, please contact:sales@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.