Chicago Business Barometer Unexpectedly Indicates Faster Growth In June
June 29 2018 - 6:07AM
RTTF2
Chicago-area business activity unexpectedly grew at a faster
rate in the month of June, according to a report released by MNI
Indicators on Friday.
MNI Indicators said its Chicago business barometer climbed to
64.1 in June from 62.7 in May, with a reading above 50 indicating
growth. Economists had expected the index to drop to 60.0.
The unexpected increase by the business barometer was partly due
to continued growth by the new orders index, which rose for the
second straight month to a five-month high.
The employment index also increased for the second month in a
row in June, although MNI Indicators noted hiring sentiment dipped
during the second quarter.
On the other hand, the report said the production index lost
ground for the fourth time since peaking in December, with firms
stifled by issues higher up in the supply chain.
In light of recent trade disputes between the U.S. and other
major economies, MNI Indicators asked firms whether ongoing trade
talks were having an impact on short-term purchasing decisions.
Just under a quarter of firms said the talks were having a
significant impact on business, while an additional 39.2 percent
said yes but only to a minimal extent up until now.
Meanwhile, 17.7 percent of firms said they had been immune to
any disruptions, with the remaining 19.6 percent unsure.
"Confusion surrounding the trade landscape continues to breed
uncertainty among businesses and their suppliers and has led to
many firms' altering their immediate purchasing decisions," said
Jamie Satchi, Economist at MNI Indicators.
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