Chicago Economic Activity Cools in June to Near Two-Year Low -- MNI Indicators
June 30 2022 - 10:30AM
Dow Jones News
By Xavier Fontdegloria
Business activity in the Chicago area slowed in June, growing at
its lowest pace in almost two years, according to data from a
survey compiled by MNI Indicators released Thursday.
The Chicago Business Barometer fell to 56.0 in June from 60.3 in
May, the lowest reading since August 2020 and below the 58.0
consensus forecast from economists polled by The Wall Street
Journal. Readings above 50 signal expansion of activity, while
below 50 indicate contraction.
The barometer is compiled after surveying firms in the Chicago
area to assess business conditions. The index takes into account
five components: new orders, order backlogs, production, supplier
deliveries and employment.
The barometer follows the trend of other U.S. regional surveys
for the manufacturing sector, which showed activity slowing or
declining in June.
Four of the five components decreased in June compared with May,
with employment the exception, MNI Indicators said.
The new orders index registered the largest decrease, dropping
9.8 points to 49.9, the lowest in two years. A quarter of firms
reported fewer new orders over the month.
The production also fell as respondents reported waning demand
and slowing production. Order backlogs also registered a marked
decrease, the report said.
The supplier deliveries index fell 0.2 points to 69.1, the
lowest level since November 2020. Deliveries remained slow and lead
times lengthened, but there were reports that some materials became
substantially more available due to lower demand.
The employment index increased to 50.7, the highest since
November 2021, in a sign that firms in the area saw relatively
stable employment conditions for the month.
Inflation pressures eased somewhat, according to the survey. The
prices paid index eased to the lowest reading since February 2021,
with 13% fewer firms reporting higher prices in June compared with
May.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
June 30, 2022 10:15 ET (14:15 GMT)
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