Chicago Business Barometer Moves Lower In March
March 31 2020 - 10:46AM
Dow Jones News
By Micah Maidenberg
The Chicago Purchasing Manager Index dropped in March.
The index, also called the Chicago Business Barometer, fell to
47.8 in March, down 1.1 points compared with February. March's
reading was the ninth consecutive reading below 50, according to
MNI Indicators, which produces the Chicago barometer.
Readings of more than 50 indicate an economic expansion, while
those below 50 indicate a contraction.
The Chicago barometer was dragged lower in March as indicators
for production and new orders both fell.
Production moved back into contraction in March after an
increase in February put that indicator above the 50 mark. New
orders dropped almost 8%.
"While some firms reported a rise in orders due to stockpiling
by U.S. customers, others noted a fall in new business [due to]
Covid-19," MNI said, referring to the illness caused by the new
coronavirus.
Order backlogs were up in March and inventories moved deeper
into a contraction. The indicator for employment was up slightly in
March, following a decline last month.
Almost 41% of respondents said new orders, in three months, will
be at the same as they were in the first quarter, while 31%
expected them to be lower. About 29% see higher levels of new
orders ahead.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
March 31, 2020 10:31 ET (14:31 GMT)
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