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- Chicago business activity decreases in January
Chicago business activity decreases in January
MNI Indicators' report revealed on Friday that business activity in Chicago decreases to the lowest since late 2015 in January.
The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 42.9 in January 2020, down from a revised 48.2 in December 2019 (originally 48.9). That was the lowest level since December 2015.
Economists had forecast the index to come in at 48.8.
A reading above 50 indicates improving conditions, while a reading below this level shows the worsening of the situation.
According to the report, all five major components of the headline index decline m-o-m in January. Orders fell 6.1 points to 41.5, while Production dropped 3.8 points to 42.7, the lowest level since July 2019, as demand weakened at the beginning of 2020. Order Backlogs declined 10.1 points to a four-year low of 34.6, registering the largest monthly fall. Inventories decreased by 5.8 points to 40.2, the lowest level since May 2016. Meanwhile, employment remained broadly unchanged with the index decreasing by only 0.2 points to 47.0, and Supplier Deliveries edged down to 53.3 in January, remaining the only one among the five major components, which stays above the 50-mark.
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