MNI 5 THINGS: Chicago Biz Barometer Sees Disappointing January

By Jai Lakhani

     LONDON (MNI) - The following are the key points from the January MNI

Chicago Business Barometer:

     --The MNI Chicago Business Barometer plummeted by 7.1 points in January to

56.7, its lowest reading since January 2017 when it fell below the 50.0

change/no-change mark.

     --Driving the fall were New Orders, which sunk to a two-year low. Anecdotal

evidence showed firms noting weaker demand from customers which was also

affected by firms being unable to absorb cost-push pressures themselves.

     --A by-product of weak New Orders was a decline in Production to a 10-Month

low. As customer orders fell, firms produced less as a result. The reading,

whilst disappointing, still shows the indicator at a healthy level, just above

its series average.

     --The adjusted Supplier Deliveries Indicator was unchanged in 2018.

However, it did decline over the last two months of 2018 and continued to ease

in January to a 17-month low. Delivery times still remain longer than normal,

however, hindering business operations. This month there were reports from

multiple firms of difficulties sourcing production staff such as welders and

machinists and metals. Firms also continued to highlight the ongoing impact of

tariffs.

     January's special question posited to firms if recent market volatility has

been impacting their business. Whilst 42.9% of firms believed their business was

not impacted by market volatility, a noteworthy 40.8% believed market volatility

was impeding activity. The remainder (16.3%) were uncertain on whether market

volatility was impacting their organization. 

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com