MNI
Indicators’ report showed on Tuesday that business activity in Chicago continued
to expand in November albeit at a slower pace than in recent months.
The
MNI Chicago Business Barometer, also known as Chicago purchasing manager's
index (PMI) came in at 61.8 in November, down from an unrevised 68.4 in October. This was the lowest reading
since February.
Economists
had forecast the index to decrease to 67.0.
A
reading above 50 indicates improving conditions, while a reading below this
level shows worsening of the situation.
According
to the report, inventories registered the largest increase among the main five
indicators, jumping to 59.6, its highest level since Autumn 2018. It was
followed by Production, which rebounded slightly in November, following three consecutive
months of declines. At the same time, Order Backlogs recorded the biggest drop in
November, which took the indicator to 60.8, six points below its 12-month
average. Elsewhere, Employment fell to 51.6, reversing last
month’s increase, and New Orders decreased to their February level of 58.2. On
the price front, Prices paid at the factory gate declined to 93.8, only just below October’s 42-year high.