The Chicago Business Barometer™, produced with MNI, dipped 3.5 points to 55.3 in October. The Barometer remained in expansion, above the neutral 50 mark, for a second month.
The decline was driven by decreases in Supplier Deliveries, Production, Order Backlogs and New Orders, partially offset by an increase in Employment.
Supplier Deliveries fell 10.3 points to their lowest level since February, but remained in expansionary territory for the twenty-first consecutive month. The index mostly reversed the previous month’s increase. Respondents reported mixed conditions: some noted that deliveries remained slow despite the shortening in delivery times, while others cited persistent delays out of Asia.
Production declined 5.2 points, remaining in expansion for a second consecutive month.
Order Backlogs decreased 4.4 points, remaining in contractionary territory for the fourth consecutive month, but still above August’s low.
New Orders edged down 0.6 points, remaining firmly in expansionary territory for a second consecutive month.
Employment rose 10.3 points to its highest level since April 2021, returning to expansionary territory after one month in contraction. The increase reflected a higher proportion of respondents reporting increased employment and a proportion employment.
Prices Paid accelerated 8.9 points, reaching their highest level since December 2021. Respondents cited cost pressures from chemical- and petroleum-based inputs, as well as fuel surcharges and freight costs. For the eighth consecutive month, no respondents reported lower prices paid than the previous month.
Inventories edged up 4.0 points, but remained in contractionary territory for the third consecutive month.
The survey ran from October 1 to October 13.
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