MNI Chicago Business Barometer™ Tumbled to 37.2 in November

The Chicago Business BarometerTM, produced with MNI, tumbled a further eight points to 37.2 in November. This was the third consecutive month of contraction. Excluding the pandemic, the November PMI was the lowest since the 2008/09 Global Financial Crisis.

• Production plunged by 9.2 points to 35.9, contracting for the third month running to 17 points below the 12-month average. Low order levels and recessionary fears dampened production.
• New Orders recorded the lowest sub-index level at 30.7, 8.5 points below the October level. Inflation concerns, higher inventories and the slowing housing market were cited as key contributors.
• Order Backlogs experienced the largest decline, receding 11.2 points to 36.1. As new orders weaken further, firms are quickly working through outstanding customer orders.
• Employment ticked up 1.5 points to 47.1, improving for a second month from the brief September dip.
• Inventories grew 2.9 points to 59.8, as weak demand conditions made it difficult to bring down inventory levels.
• Supplier Deliveries declined by 9.4 points to 49.9 in November, nearing pre-pandemic levels as supply pressures eased. Overall lead times remain historically long and transparency issues persist.
• Prices Paid moderated by 8.6 points to 66.2 in November. This is 15.9 points below the 12-month average and signals a continued slowing in prices.
• The survey ran from November 1 to 14.