MNI: US DATA: MNI Chicago Business Barometer.........>

MNI: US DATA: MNI Chicago Business Barometer Unchanged at 58.9 in August

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The MNI Chicago Business Barometer remained stable at the July level of 58.9,

the joint-lowest level since April. While marking the eighteenth consecutive

above-50 reading, this month's unchanged result follows July's sharp decline

that snapped a run of five straight monthly increases in business optimism.

Apart from Employment, all other components of the Barometer were above their

respective levels seen last August and all of them were above their January

levels, pointing to robust confidence among the US firms. The stability in

sentiment was the result of gains in production and demand being offset by

losses in backlogs, employment and supplier deliveries. Both New Orders and

Production increased slightly, following hefty falls last month. Firms also saw

the level of backlogs fall in August. The Employment indicator slipped for the

third consecutive month in August while inflationary pressures at the factory

gate eased slightly again in August. The survey period ran from August 1-21.