Chicago Business Barometer™ - Slows To 41.5 In August

The Chicago Business Barometer™, produced with MNI slowed 5.6 points to 41.5 in August. This almost fully unwinds the rise seen in July. The index has now been below 50 for twenty-one consecutive months. 

The decline was driven by a sharp pullback in New Orders, alongside falls in Employment, Production and Order Backlogs. This was partly offset by a rise in Supplier Deliveries.

NEW ORDERS LARGEST FALL SINCE SEPTEMBER '23

New orders dropped 10.8 points, driven by a decrease in the proportion of respondents reporting more new orders and an increase in the proportion reporting fewer new orders.

EMPLOYMENT REVERSES MAY INCREASE

Employment compressed 5.9 points to the lowest since June 2020. The index has now more than unwound the 8.3-point increase seen in May.

Production softened 3.6 points to the weakest level since December 2024, marking the fifth consecutive decline in Production.

Order Backlogs eased 1.4 points.

Supplier Deliveries increased 5.8 points. For the second month this year, no respondents reported faster supplier deliveries.

PRICES PAID CONTRACTS AGAIN

Prices Paid contracted 8.3 points for the second consecutive month. However, the index remains above the 2024 average.

Inventories weakened 2.3 points.

The survey ran from August 1 to August 11.