Chicago business activity increases slightly in November

MNI Indicators’ report revealed on Wednesday that business activity in Chicago rose slightly this month.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 46.3 in November, up from an unrevised 43.2 in October. Economists had forecast the index to increase to 47.0.

A reading above 50 indicates improving conditions, while a reading below this level shows worsening of the situation.

According to the report, only two of the five components of the headline indicator saw a monthly advance: The New Orders rose by 12.5 points to 49.4, just a touch below the 50-mark, and the Order Backlogs recovered to 45.0 in November after October’s sharp drop to 33.1. At the same time, the Supplier Deliveries recorded the largest monthly fall to 50.2, hitting the lowest level since June 2016. The Production edged down to 42.3 in November after October’s uptick and the Inventories decreased to 43.0, indicating that firms continue to run down their stocks. On the price front, prices at the factory gate cooled further to 53.5 in November, registering the lowest level since April.