MNI DATA IMPACT: Chicago Business Barometer Higher In Nov

--MNI Chicago Business Barometer 46.3 in Nov vs 43.2 Oct

--New Orders and Order Backlogs Picked Up, Supplier Deliveries Fell

     LONDON (MNI) - The Chicago Business Barometer rose 3.1 points in November,

hitting a two-month high 46.3. However, the index remained in contraction for a

third month straight, resulting in a further fall of the three-month average to

45.5. 

     The New Orders and Order Backlogs indices saw the largest monthly

improvements in November, while Supplier Deliveries revealed the largest fall,

the survey published Wednesday showed.

     The main points of note from the release follow:

     --The headline Index would need a reading of 60.5 in December to reach the

neutral level of 50 across Q4.

     --Production slipped to 42.3 in November after October's uptick. However,

demand improved significantly, indicated by New Orders which rose by 12.5 points

to 49.4, just a touch below the 50-mark. There was, though, anecdotal evidence

of firms being concerned about the outlook due to wider economic issues.

     --Order Backlogs recovered to 45.0 in November after October's sharp

decline to 33.1. Nevertheless, the indicator is below 50 for a third straight

month.

     --Inventories fell by 8.7% to 43.0, indicating that firms continue to run

down their stocks. The indicator revealed a fourth sub-50 reading in November.

     --Labor demand ticked down by 0.2 points to 49.6, leaving the three-month

average at 48.3.

     --Supplier delivery times saw the largest monthly decline to 50.2, hitting

the lowest level since June 2016. However, the index is the only one among the

main five components which remains above the 50-mark.

     --Prices at the factory gate cooled further to 53.5 in November,

registering the lowest level since April.

     --November's special question asked, "Are you passing the costs of tariffs

on or absorbing the costs?" The majority of 57% said they are not passing on the

costs of tariffs in contrast to 43% who said they are passing on the costs.

--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

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