EGBS: Spreads Widen As Equities Sell Off

In December, the Chicago Report™ also asked firms “When are you planning to make your next (major) capital investments for growth?”

• 46% of respondents said they were unsure.
• Meanwhile, 25% of respondents said they were planning to make investments now or in H1 2026.
• 21% of respondents said they plan to make major capital investments in H2 2026, while 7% reported plans to make investments in 2027

In December, the Chicago Report™ asked firms “Is AI helping your procurement/supply operations?”

• 36% of respondents said they have not implemented AI, while 36% were in the early phases of implementation.
• 14% reported mixed results, citing a need for more time to measure how AI is working.
• 11% of respondents do not currently see any benefits from AI, while 4% say they are getting results.
• No respondents reported mixed results where AI is working for some operations but not others.

The Chicago Business Barometer™, produced with MNI, rebounded 7.2 points to 43.5 in December. The index has mostly unwound November’s decline but has remained below 50 for twenty-five consecutive months.

• The rise was driven by increases in New Orders, Order Backlogs and Production. Declines in Supplier Deliveries and Employment provided a small offset.
• Order Backlogs climbed 12.3 points, partially reversing November’s drop. However, the index remains below 40 and has only been above that weak mark for three months this year.
• New Orders jumped 11.8 points, almost completely unwinding last month’s fall.
• Production strengthened 9.6 points. The index is now back above its 2025 average and at its highest since March.
• Supplier Deliveries softened 3.6 points, but the index has remained above 50 for eleven months.
• Employment dipped 0.6 points to the lowest since May 2009. No respondents reported larger employment for the second consecutive month.
• Inventories fell 0.5 points, remaining below the 2025 average.
• Prices Paid faded 1.1 points. No respondents reported lower prices paid for the third consecutive month.
• The survey ran from December 1 to December 15.