Chicago Business Barometer™ - Cooled to 56.7 in June

The Chicago Business Barometer™, produced with MNI, cooled 6.0 points to 56.7 in June. The Barometer remained in expansionary territory for a second consecutive month.

The fall was driven by declines in New Orders and Production, while rises in Supplier Deliveries, Order Backlogs and Employment provided some offset.

NEW ORDERS PARTIALLY UNWIND MAY BOUNCE

New Orders declined 11.7 points, partially unwinding the strong rise seen in May (which took the index to its highest level since January 2022). New Orders remain in expansion for a second consecutive month.

Production slowed 10.4 points, almost completely reversing May’s increase, but remains expansionary for the sixth straight month. 

SUPPLIER DELIVERIES HIGHEST SINCE JUNE 2022

Supplier Deliveries expanded 8.8 points to the highest since June 2022. Respondents noted higher lead times due to the Middle East conflict.

Order Backlogs edged up 2.4 points to the highest since December 2022, remaining above 50 for a second month.

Employment ticked up 1.3 points, back at the level seen in April but remaining in contraction for four straight months.

PRICES PAID REMAIN HIGHEST SINCE 2022

Prices Paid edged up 1.6 points to the highest level since May 2022. Respondents cited higher oil and metal prices as key drivers of rising prices.

Inventories slipped 5.1 points, in contraction after one month above the neutral 50 mark.

The survey ran ran from June 1 to June 16.