MNI 5 Things: Chicago Biz Barometer Surges In November

--New Orders Highest Since May 2014: Nov 

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

Chicago Business Barometer:

     - The MNI Chicago Business Barometer jumped to an eleven-month high of 66.4

in November, up 8.0 points from October, ending a run of three months of

consecutive declines. The headline index improvement was shared across all

subcomponents, though particularly concentrated in resurgent orders, solid

output and higher unfinished goods.

     - Order book growth rebounded in emphatic form in November, notching up a

54-month high this month, having declined in each of the last two months. There

was anecdotal evidence of firms looking to replace inventory levels.

     - Wait times for key materials remained lengthy in November, with the

Supplier Deliveries indicator up again this month extending last month's

14-and-a-half-year high. There were reports of suppliers keeping prices up and

reducing capacity in a bid to calm nervousness in demand and to stabilise labor

overtime.

     - This month's special question asked firms whether they anticipated labour

issues hampering their productivity in the New Year. The majority, 42.6%, did

not foresee this happening but just over a third did expect to run into some

labor-related issues in 2019. The remaining 21.3% answered "maybe".

     - Production found extra room to grow in November. The indicator rose for

the first time since August. According to firms, higher new orders and increased

pressure from customers for more timely delivery left production lines busier

than normal.

     - Input price inflation, measured by the Prices Paid indicator, remains

elevated in October, locked in a historically high range. Firms reported tariffs

starting to filter through into their invoices, suggestive of pipeline

inflationary pressures building up. This, supplemented by higher labor costs,

raw material prices and transport costs, saw firms voice concerns that their

business could be stifled looking forward.

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

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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