The Chicago Business BarometerTM, produced withMNI, edged up 6.1 points in February to 49.0, thehighest level since August 2019. The index movedcloser to the 50-no-change-threshold, shifting thethree-month average up to 46.7.
Among the main five indicators, Production andSupplier Deliveries showed the greatest gains, whileEmployment was the only one to decline.
Production gained 8.3 points to 51.0, hitting an eightmonthhigh. The index shifted back into expansionfollowing seven straight months below 50. Demand forNew Orders strengthened in February, rising by 7.6points to 49.1, the highest level since August 2019.
After dropping to a four-year low in January, OrderBacklogs rose slightly to 38.2 in February. However, theindex remained in contraction since September 2019.
Inventories rose 7.8 points, reaching a six-month highof 48.1 in February, although recording the seventhsub-50 reading.
Employment slipped to 44.5, slipping 2.4 points to thelowest level since July 2019.
Supplier Deliveries surged up to its highest level sinceNovember 2018, rising by 7.9 points to 61.3, withanecdotal evidence that the coronavirus is alreadyleading to supply chain disruptions.
Prices at the factory gate cooled for the secondsuccessive month, dipping by 3.2 points to 52.9.
February’s special question asked “Will the signing ofthe Phase 1 deal with China/Epidemic have any impacton your business?” The majority 45.7% reported littleimpact, while 30.4% noted no impact at all and 23.9% mentioned a large impact. The second question asked“Have Boeing's ongoing issues had an impact on yourbusiness?” The majority, at 91.3%, said they are notaffected by Boeing’s ongoing issues, while 8.7% are.
