MNI 5 THINGS: Chicago PMI Eases in '18 After Strong End to '17

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

Chicago Business Barometer:

     - The MNI Chicago Business Barometer fell 3.8 points to 61.9 in February, a

six-month low, extending the 2.1 point drop recorded last month. Although this

is the first time the Barometer has recorded two consecutive monthly declines in

just over a year, it has now stood above the 60-mark for six straight months,

remaining in expansion mode for twenty four consecutive months.   

     - The pace of incoming orders and output eased again in February. Firms

reported large promotions at the back-end of last year, a seasonal demand dip

and bad weather this month as reasons why activity slowed. New Orders and

Production fell to respective six and five-month lows in February, although

remained elevated against the backdrop of the last few years.

     - Based on the non-seasonally adjusted survey data, 38.5% of respondents

said they encountered higher input prices this month, down from the

six-and-a-half year high of 48.1% last month. Steel, wood, foam and alloys were

among the materials to have impacted firms in February.       

     - Looking forward, the majority, and exactly half, of firms surveyed felt

their business activity will be challenged over the forthcoming year by the

price of key inputs. Just 6% saw input prices aiding their business while the

remaining 44% felt they would have next to no impact.

     - Order Backlogs continued the descent towards more familiar territory in

February, falling 3.1 points to hit the lowest level in just 2 months shy of a

year. Unfulfilled orders peaked early in the final quarter of 2017, as increased

demand and adverse logistical conditions made satisfying orders challenging, and

have been trending lower since.

--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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