MNI DATA IMPACT: U.S. Chicago Biz Barometer Cools in June

     LONDON (MNI) - The MNI Chicago Business Barometer decreased by 4.5 points

to 49.7 in June from 54.2 in May, marking the first sub-50 reading since January

2017. The following are the key points from the June release:

     - As anticipated, business confidence dipped significantly in Q2, with the

Barometer averaging 52.2, down 13% on the previous quarter and almost 16% lower

than the Q2 2018 reading.

     - Four of the five components declined this month, with only Employment

posting an increase. Demand eased for a fourth month this year, helping push the

indicator into the contraction territory for the first time since January 2017.

Amid weak demand, firms also slowed production levels. The Production indicator

fell 15.5% on the quarter to hit a three-year low.

     - Order Backlogs remained in contraction for the second consecutive month.

It was the only indicator that fell below 50 on the quarter as well.

     - Prices at the factory gate picked up for the second consecutive month.

There was anecdotal evidence of tariffs leading to higher prices, with some

firms looking for cheaper alternate sources, both domestically and

internationally.

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

--MNI London Bureau; tel: +44 203-586-2224; email: shaily.mittal@mni-indicators.com

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

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