MNI DATA IMPACT: Chicago Business Barometer Higher In Dec

--Chicago Business Barometer 48.9 in Dec vs 46.2 Nov

--Production and Supplier Deliveries Pick Up; Employment Lower

By Irene Prihoda

     LONDON (MNI) - The Chicago Business Barometer rose 2.6 points in December,

hitting a four-month high of 48.9, although the index remained in contraction

for the fourth consecutive month. 

     Business sentiment dropped by 1.2 points to 46.2 in Q4, recording the

lowest quarterly reading since Q2 2009.

     Among the main five categories, Supplier Deliveries and Production saw the

largest monthly gains, while Employment registered the biggest fall, the survey

published Monday showed.

     The main points of note from the release follow:

     -- The headline index increased for the second successive month, but

remains below the 50-mark. Business confidence has weakened sharply throughout

2019 with four of the five sub components showing readings below the 50-mark for

several months.

     -- Production gained 4.9 points to 47.2, hitting the highest level since

August. However, demand slowed in December, indicated by a marginal decline to

49.1 in New Orders after November's reading of 49.4.

     -- December saw Order Backlogs pick up again, building on November's

recovery after the sub-category hit a near-four-year low in October. The index

hit a three-month high of 46.2, although it saw the largest quarterly decline of

the components, falling to 41.4.

     -- Inventories remained in contraction for a fifth consecutive month in

December, despite strengthening by 4.4 points to 47.4.

     -- While Employment cooled to 47.4 in December, showing the largest monthly

decline, it also scored the biggest quarterly gain in percentage terms, up by

11.1% to 48.9.

     -- Supplier Delivery times increased by 5.1 points to 55.4 and it is the

only component among the main five remaining above the 50-mark.

     -- Prices at the factory gate jumped 9.2% to 58.4 in December, hitting the

highest level since August.

     -- December's special question asked, "What percent of your firm's 2020

Capital Budget plan is focused on labor productivity?". The majority (50%) are

planning to utilise less than 5% of their capital budget on labor productivity,

while 26.2% will spend more than 5% and 23.8% more than 10%.

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

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

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