MNI Chicago Business Barometer Moderates....>

US DATA: MNI Chicago Business Barometer Moderates To 65.4 In December

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The MNI Chicago Business Barometer eased to 65.4 in December, down 1.0 point

from November's 66.4. Although three out of the five Barometer sub-components

lost ground on the month, solid gains in Production and Order Backlogs helped

the headline index maintain most of November's eight-point rise. Although down

on a year-over-year basis for the fourth time since January, the Barometer

continues to signal a healthy business environment, recording the 34th

consecutive reading above 50. Over Q4 as a whole, the headline index averaged

63.4, the best calendar quarter outturn this year. Contributing to December's

moderation was a decline in demand, easing somewhat after surging last month.

However, November's order book strength did translate into higher output this

month with Production rising to an 11-month high. As last month, firms reported

pressure from customers for earlier delivery on existing orders. The survey

period ran from December 1 to December 18.