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Key Points – September Report
The Chicago Business BarometerTM, produced with MNI, slipped to 64.7 in September, the lowest level since February.
Among the main five indicators, Order Backlogs saw thelargest decline, followed by Supplier Deliveries and New Orders. Only Employment increased through the month.
Order Backlogs pulled back sharply in September, dropping 20.5 points to a six-month low of 61.1. Companies said that was mostly due to supply shortages that are still weighing on production
Supplier Deliveries through September fell 11.6 points to 81.2, the lowest since April, as firms reported worsening port congestion and ongoing problems with ocean, rail trucking, and even air cargo.
New Orders softened through the month, falling 3.4 points to 64.4, the lowest since March. Businesses said that was linked to raw material shortages and a low supply of critical components like semiconductors.
Prices Paid unwound by 3.2 points in September to a four-month low of 90.7. Companies reported fewer problems with labor that may have put downward pressure on prices, but many said prices were still an issue.
Production in September fell marginally, dropping 0.3 points to 60.7, but still the lowest reading since June.
Employment was the only indicator that saw an increase through the month, rising 4.1 points to 52.4, the highest since April.
This month’s first special question asked, “As prices pick up nationwide, are your staff costs likely to increase in the next 6 months?” The majority (38.89%) said they would by 0 – 5%. The second special question asked,“Now that the Delta variant has become an area of back-to-work delay, has your company modified its supply chain strategy to address a potential problem in manufacturing and problems?” The majority (52.78%) said they had.
