Research >> Economics
Chicago Purchasing Managers Index down 1.2 points to 59.6 in January
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- Employment Slips Into Contraction
- Production, New Orders, Backlogs Rise Slightly
The Chicago Business Barometer softened to 59.6 in January from a revised 60.8 in December, the third consecutive monthly fall following October’s jump to the highest since March 2011.
In spite of January’s slower rate of expansion, the Barometer remained firm and consistent with the recent pick-up in GDP.
Declines in Employment and Supplier Deliveries led the Barometer lower, with Employment slipping into contraction for the first time in nine months.
Production, New Orders and Order Backlogs increased slightly, having fallen for the past two months.
The Employment component fell sharply for the second consecutive month to the lowest since April 2013. The majority of companies said their workforce was unchanged with some of them reporting higher productivity of their employees.
Prices Paid rose to the highest level in more than a year as suppliers continued to request price increases.
Business activity continued to ease in January but remained at a relatively high level. Production and New Orders remained firm, and while Employment fell back into contraction, this doesn‘t appear to be indicative of current demand conditions.
There have been concerns that putting the brakes on monetary easing could damage business. Most respondents, though, thought that the Federal Reserve’s decision to begin tapering their bond purchases in December would not have a significant impact on their business.
Posted: January 31, 2014 Friday 09:45 AM