.jpg)
- Business Barometer Three Month Average Highest for Two Years
- Employment Highest since October 2011
The November Chicago Business Barometer softened to 63.0 after October’s sharp rise to a 31-month high of 65.9. November’s slight correction came amid mild declines in New Orders, Production and Order Backlogs after double digit gains in the prior month.
Despite November’s weakening, the Barometer remained well above 60 for the second month, pushing the three month moving average to the highest level since November 2011.
Chicago area purchasers continued to report healthy expansion in New Orders and Order Backlogs, albeit at a slower rate, as well as a lengthening in Supplier Delivery Times.
Employment was up for the second consecutive month, reaching the highest level since October 2011, and the first time above 60 since February 2012.
Inventories exploded 13.1 points to 61.1, moving out of contraction for the first time since February and posting the highest reading since September 2006. With expectations for higher demand, firms underwent a major stock rebuild.
Commenting on the MNI Chicago Report, Philip Uglow, Chief Economist at MNI Indicators said, “The Barometer might be down in November, but this was another impressive month with companies reporting firm growth”.
“Having kept inventories lean for so long, a pick-up in demand has led to a sharp rise in stock building among the companies in our panel. And to handle the latest production and new orders boost, companies are hiring at the fastest pace for twoyears,” he added.
