By Xavier Fontdegloria

Business activity in the Chicago area expanded in November for the fifth consecutive month, although the growth pace continued to slow, data from MNI Indicators showed Monday.

The Chicago Business Barometer came in at 58.2 in November, down from 61.1 in October. Economists polled by The Wall Street Journal had expected the barometer to come in at a higher level of 59.1.

The barometer is compiled every month after surveying purchasing and supply management professionals in the Chicago area, who are polled to assess business conditions for their respective companies. Readings above 50 point to improvement of the business climate in the region, while readings below 50 indicate negative changes.

Business activity in the region is expanding at the lowest rate since August, data shows.

Among the five main indicators, new orders and production posted declines while supplier deliveries saw the largest gain, MNI Indicators said.

New orders fell for the first time since May, dropping by five points to its lowest level since August as demand cooled.

Production dipped 1.2 points, with some companies reporting an uptick in demand, although order levels remain below pre-crisis levels. Other respondents noted stagnant demand and adjusted production due to Covid-19, the report said.

Order backlogs edged up marginally by 0.9 points, while inventories eased further in November, hitting a three-month low.

Supplier deliveries jumped to 4.9 points in November, after a slight fall in October. The index rose to the highest level since May as firms saw delivery delays, MNI Indicators said.

Employment edged up slightly, by 0.8 points, following a decline in October. However, employment remains in contraction territory since July 2019.

To the question of how employee productivity evolved during the crisis, 55.4% of the respondents reported no change in productivity, while 32.1% saw a gain between 1% and 10%.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

November 30, 2020 10:20 ET (15:20 GMT)

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