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Chicago Purchasing Managers Index Slipped 9.1 points to 66.1 in June
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The Chicago Business BarometerTM, produced with MNI, fell to 66.1 in June, a four-month low. 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 to a three month low 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. 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. Across Q2, the indicator saw the largest increase, rising from 60.0 in Q1 to 73.5.
Inventories declined 4.3 points, to 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 slipped to the lowest level since January with firms noting difficulties in finding new staff. Through Q2 the index gained 1.1 points, rising to 50.1.
Supplier Deliveries rose 4.2 points to 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. Companies noted higher prices due to material shortages. Across Q2, prices rose 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.
Posted: June 30, 2021 Wednesday 09:45 AM