MNI 5 THINGS: Longer Q4 Delivery Times: Chicago Biz Barometer

--September Chicago Biz Barometer Falls To 60.4 

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

Chicago Business Barometer:

     --The MNI Chicago Business Barometer fell for the second month in a row in

September, moderating by 3.2 points to a five-month low of 60.4. The result was,

however, the 11th above-60 reading in the past 13 months and was consistent with

a Q3 quarter average of 63.2 -- a 2018 best -- and continues to signal of solid

business conditions.

     --This month's second special question asked firms whether they expected

supplier delivery times to increase, stay unchanged or shorten over the

remainder of the year. More than half of firms expected existing pressures to

extend into Q4, pencilling in longer lead times, while just under 10% saw items

getting through their gates quicker. A cocktail of material shortages,

overstretched suppliers and tariff-induced uncertainty has driven delivery times

higher over this year.

     --Growth across Production and New Orders remained solid, despite both

softening in September. Production eased to a 6-month low, while New Orders

growth ran at its slowest pace in 5 months. Both indicators were up on the

quarter, however, holding pat with the calendar quarter average levels seen late

2017/early 2018.

     --Despite easing for a second straight month, September's result was enough

to send the Prices Paid indicator to a 10-year quarterly high in Q3. The

indicator has been hemmed in around the historically elevated 80-mark for the

past few months, and although softer in September the indicator remains at lofty

levels, and firms expect prices remain there in coming months.

     --Employment intentions continued to soften in September and now trends in

line with long-run average levels. While firms report that they are open to

hiring new personnel, finding adequate workers with suitable skills continues to

prove challenging.

--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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