.jpg)
Key Points – October Report
The Chicago Business BarometerTM, produced with MNI, rose to 68.4 in October, picking up after two consecutive months of decline.
Among the main five indicators, four were higher, led by Order backlogs and Employment. Only Production fell across the month.
After the sharp September fall, Order Backlogs recovered more than half the loss, picking up 13.5 points index points.
Supplier Deliveries rose through September to stand at 84.7, as firms again reported worsening port congestion and ongoing logistical issues with trucking, rail, and even air cargo.
New Orders advanced 3.1 points, recovering from September’s 6-month low. Some businesses said raw material shortages and a low supply of critical components like semiconductors at suppliers was impacting opportunities.
Prices Paid rose by 3.6 points in October to a 42-year high, with many companies saying prices continued to be an issue.
Production was the only component to fall in October, dropping 2.2 to the lowest reading since August 2020.
Employment increased again, up for a fourth straight month, rising 4.2 points to stand at the highest in just over three years.
This month’s special question asked, firms what they anticipated “will be the greatest challenge for your business in Q4?” The majority (52.8%) said logistics. The second question asked simply, “Are you considering new hires in 2022?” The vast majority (72.2%) said they were looking to recruit, with just 11.1% saying no. The balance, 16.7%, were unsure of how they would stand on hiring next year.
