Chicago Business Barometer Unexpectedly Drops To Two-Year Low In April
30 April 2019 - 12:00PM
RTTF2
MNI Indicators released a report on Tuesday unexpectedly showing
a continued slowdown in the pace of growth in Chicago-area business
activity in the month of April.
The report said the Chicago business barometer dropped to 52.6
in April after tumbling to 58.7 in March, hitting its lowest level
since January of 2017.
While a reading above 50 still indicates growth in Chicago-area
business activity, economists had expected the barometer to inch up
to 59.0.
The unexpected decrease by the Chicago business barometer came
as the new orders index fell for the second consecutive month,
dipping below both its three and twelve-month averages.
Reflecting the recent weakness in orders, the production index
also pulled back sharply, dropping to its lowest level since May of
2016.
MNI Indicators said the pullback in demand and production was
matched by reduced demand for labor, with the employment index
falling to its lowest level since October of 2017.
"This was a disappointing start to the second quarter, with more
firms cutting back on both production and employment against a
backdrop of softer domestic demand and the global slowdown," said
Shaily Mittal, Senior Economist at MNI.
She added, "Most Barometer components have dived below their
respective 12-month averages, pointing towards greater business
uncertainty among firms."
On the inflation front, the report said factory gate prices saw
the biggest monthly drop since December of 2008, taking the
indicator to its lowest level since March of 2016.
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