MNI DATA IMPACT: Chicago Biz Barometer Dips To Near 4-Year Low

--October Chicago Business Barometer Down 3.9 Points At 43.2

By Les Commons

     LONDON (MNI) - The Chicago Business Barometer, produced with MNI, fell 3.9

points to 43.2 in October, hitting the lowest level since December 2015, data

released Thursday showed.

     The main points of note from the release include:

     -The index slipped further into contraction with a second straight sub-50

reading. The survey points to further weakness in business activity, with the

three-month average falling further to 46.9.

     -Only two of the major components saw a monthly decline, although both New

Orders and Order Backlogs fell sharply in October. New Orders declined to 37.0,

its lowest since March 2009 

     -Production bounced to 46.8, although the indicator has been in contraction

since July. Inventories rose to 47.1, marking the strongest reading since

August, indicating that companies continued to run down their stock, albeit at a

slower pace.

     -Order Backlogs saw the largest monthly decline, dropping by 13.6 points to

33.1. The index registered below the 50-mark for a second successive month after

September's level of 46.8.

     -Prices at the factory gate cooled for the third consecutive month in

October, dipping to 54.8. There was anecdotal evidence of lower steel prices,

although tariffs offered some upside pressure.

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

--MNI London Bureau; +44 0203 865 3814; email: irene.prihoda@marketnews.com

[TOPICS: MAUDR$,MAUDS$,M$U$$$,MT$$$$]