Chicago Business Barometer Slipped in August
The MNI Chicago Business Barometer slipped 1.9 points to a three-month low of 63.6 in August, down from July’s 65.5, the Institute for Supply Management reported on Friday.
The index is still 6.9% higher on the year and continues to signal robust business conditions, ISM said.
Companies’ operations continued to grow at a healthy pace in August, despite dropping for the first time in five months. A softening in supplier deliveries, order backlogs and employment offset gains in production and new orders, ISM said.
“The MNI Chicago Business Barometer continues to signal solid business sentiment, despite easing for the first time in five months, with growth in output and demand holding up well,” said Jamie Satchi, economist at MNI Indicators. “Inflationary pressures look set to continue, potentially bleeding into consumer prices, with over 60% of firms reporting that they have passed on higher input costs to customers in recent months, and others foreseeing doing so in the near future.”
Firms continued to expand their workforces in August, despite the employment indicator slipping from July’s four-month high. The indicator has remained above the neutral threshold of 50 for the past 10 months in a row, the longest stretch since April 2015.