.jpg)
Key Points – November Report
The Chicago Business BarometerTM, produced with MNI, slipped to 58.2 in November. The index now stands at the lowest level since August but remains in expansion.
Among the main five indicators, New Orders and Production posted the only declines, while Supplier Deliveries saw the largest gain.
Demand cooled in November with New Orders dropping by 5.0 points to its lowest level since August. New Orders fell for the first time since May, while Production dipped 1.2 points. Some companies reported an uptick in demand, although order levels remain below pre-crisis levels. Others noted stagnant demand and adjusted production due to Covid-19.
The Backlog of work edged up marginally by 0.9 points in November, marking a third consecutive reading above the 50-mark.
Inventories eased further in November, slipping 2.0 points, hitting a three-month low.
The demand for labour edged up 0.8 points following a decline in October. Nevertheless, employment remains in contraction since July 2019.
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.
Prices at the factory gate surged 9.8 points in November, hitting the highest level in over two years.
This month’s special question asked how employee productivity had been during the crisis period. The majority, at 55.4%, reported no change in productivity during the current crisis, while 32.1% saw productivity gain between 1-10%. The second special question asked: “Does the outcome of the general election have any effect on your forecast?” The majority, at 73.2%, noted that the election results do not influence their forecasts. On the other hand, 12.5% see their forecasts increase, while 14.3% reported a decrease.
