Chicago Business Barometer Indicates Notably Faster Growth In September
September 30 2016 - 6:11AM
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Reflecting a notable acceleration in the pace of production
growth, MNI Indicators released a report on Friday showing
Chicago-area business activity grew at a much faster than expected
rate in the month of September.
MNI Indicators said its Chicago business barometer jumped to
54.2 in September from 51.5 in August, with a reading above 50
indicating growth in regional business activity. Economists had
expected the index to inch up to 52.0.
The bigger than expected increase by the barometer was driven by
a sharp increase by the production index, which surged up by 7.3
points to 59.8, its highest level since January.
Meanwhile, the new orders and order backlogs indexes were little
changed in September after leading the barometer's decline in
August, with the latter failing to bounce back above the 50
breakeven level.
The report also said the employment index pulled back in
September after rallying to a sixteen-month high in August.
"Economic growth in the U.S. appears to have picked up a little
at the end of the third quarter and although the employment
component fell, this was on the back of a relatively strong showing
in the previous month," said Lorena Castellanos, senior economist
at MNI Indicators. She added, "Note employment usually lags changes
in orders and output, so it was not that surprising to see this
component weakening in September."
On the inflation front, the report said the prices paid index
rose slightly in September, indicating early signs of pipeline
inflationary pressures after four consecutive monthly decreases
left the indicator at a five-month low.
MNI Indicators noted 79 percent of Chicago panelists said the
run-up to presidential election in November is having a negligible
impact on business.
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