Research >> Economics
Chicago Purchasing Managers Index rose 6.0 points to 50.4 in August
The Chicago Business BarometerTM, produced with MNI, rose 6.0 points to 50.4 in August, up from 44.4 in July. The index had been in contractionary territory for two months before this month’s gain.
Only two of the Business Activity components saw a monthly decline, as Supplier Deliveries saw a sharp fall, dropping to 50.3 from July’s 55.6.
The survey still suggests a softer overall tone in business activity despite the August pick-up in sentiment, as the three-month average fell again, dipping to 48.2.
Production remains muted, despite a pickup of 6.7 points. Demand recovered slightly, highlighted by an increase in New Orders, which saw the largest single component monthly gain and shifted back into expansion.
Order Backlogs recovered to 51.3 in August after three straight months below 50. The index stood at 43.5 in July.
Inventories witnessed the largest monthly percentage decline, falling by 11.2% to 47.9, indicating that firms started to run down inventories in August.
Labor demand improved in August, with the Employment indicator rising slightly to 43.7, however the component has remained in contraction since July.
Prices Paid at the factory gate ticked up 3.7 points, reaching a five-month high of 59.8 – still a long way shy of the 12-month high 79.8.
This month’s special question asked firms about their business investment plans for the remainder of 2019. The majority, at 63%, intend to leave their current plans unchanged, with firms noting global uncertainties as their main concern. While 27% are planning to increase their investments, the balance of 10% intend to reduce theirs.
Posted: August 30, 2019 Friday 09:45 AM