Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Chicago Business Barometer fell in June, with the headline index dropping to 66.1 from 75.2 in May, driven by a sharp decline in new business and order backlogs. However, through Q2 the index surged 7.9 points to 71.1, its highest quarterly reading since Q4 1973.
Among the main five indicators, Order Backlogs saw the largest decline, with Supplier Deliveries posting the only gain.
New Orders languished markedly, dropping from May's 80.0 to 66.7 in June. However, the index jumped to 73.0 over Q2, its highest reading since Q3 1983. Production eased slightly in Q2 to 67.9, while the monthly index slipped 10.6 points to 60.0. Some firms reported lower production levels due to material shortages, while others noted that the shortages created new business.
Order Backlogs slowed by 14.1 points to 66.6. Across Q2, the indicator saw the largest points and percentage increase, rising from 60.0 in Q1 to 73.5. Meanwhile, Inventories declined 4.3 points to 37.5, the lowest level since August 2020 and the third successive reading below the 50-mark. Over the second quarter, Inventories fell sharply, down 11.6 points to 42.1.
EMPLOYMENT
Employment slipped to 44.0 in June with firms noting difficulties in finding new staff. Through Q2, Employment gained 1.1 points, rising to 50.1.
Supplier Deliveries rose to 86.5, the highest level since March 1974 as logistical problems persisted. The index rose to 81.7 in Q2, its highest level since Q1 1974. Prices paid at the factory gate surged to the highest level since December 1979 at 91.9. Companies noted higher prices due to material shortages. Across Q2, prices expanded to 90.6, also a near 41-year high.
This month's special question asked, "How would you compare the current state of your organization to a year ago?". The majority (41.0%) reported that their firms are thriving and growing. The second question asked, "Are rising prices going to have a material impact on your business thinking?". The majority (82.1%) said their business decisions are impacted.
This month's survey ran from June 1 to 14.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.