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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.
MNI (London)
Key Points – May 2023 Report
The Chicago Business Barometer™, produced with MNI, tumbled -8.2 points to a six-month low of 40.4 in May. The headline index has now been in contractionary territory for nine consecutive months.
- All subindexes softened in May, with Order Backlogs experiencing the most pronounced contraction. All subindexes except Supplier Deliveries and Prices Paid were in contractive (sub-50) territory this month.
- Production slumped by -8.3 points in May, more than reversing the April rebound. Anecdotal evidence suggested firms’ customers were seeing a marked slowdown in business activity. Rising financing costs was flagged as slowing customer activity, particularly residential investment.
- New Orders declined by -6.0 points to a six-month low. This is the second-lowest print since June 2020. Firms cited customers having previously overordered.
- Order Backlogs fell -15.1 points to the lowest level since May 2020. Automotive backlogs remained elevated.
- Employment softened by -2.7 points in May. The subindex has been in contractive territory for nine months now barring April, as firms struggle to hire and retain staff.
- Supplier Deliveries eased by -2.7 points as supply chain pressures continued to normalize for the majority of inputs. Inventories slipped -4.4 points to the lowest level since July 2021. Firms were slowing restocking and working through previous build-up of inventories due to more muted demand.
- Prices Paid cooled by -9.4 points to the softest since August 2020. Weak demand was cited as the key downwards driver of prices. The pass through of lower commodity prices from suppliers remained slow and moderate.
SPECIAL QUESTION
In May, the Chicago SurveyTM asked firms what their greatest challenges to conducting business at the moment are. Increased costs were voted by the largest share as the greatest challenge, followed closely by labor shortages. Declining economic sentiment and delivery/lead times came in equal third. Fifth most challenging was decreased demand and sixth material shortages.
Click below for the full press release:
MNI_Chicago_Press_Release_2023-05.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.
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