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Chicago Purchasing Managers Index jumped 11.2 points to 62.4 in September
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The Chicago Business BarometerTM, produced with MNI, jumped to 62.4 in September, the highest level since December 2018, as business activity recovered across the board. Through Q3, business sentiment recovered sharply to 55.2, the strongest reading since Q1 2019.
All five main indicators saw monthly gains in September, with Production and New Orders leading the way. On a quarterly basis, Supplier Deliveries was the only category to see a decline.
Production recovered sharply in September, rising by 16.0 points to an almost two-year high. Output jumped 29.2 points on a quarterly basis in Q3, while Demand gained 11.0* points in September, shifting the New Orders index up to the highest level since November 2018. In Q3, New Orders saw the greatest uptick, rising by 32.0 points.
Order Backlogs jumped 14.4% in September, while the quarterly index gained 16.7 points to rise to its highest level since Q1 2019.
Inventories climbed to a four-month high in September, although the indicator has been stuck below the 50-mark since May.
Despite the improvement in Employment, firms continued to mention additional layoffs in September. Across Q3, the sub-index rose 8.1 points.
Supplier Deliveries edged up 2.8 points, while Q3 dropped 9.2 points as Covid-19 related delays declined.
Prices paid at the factory gate leaped 9.7 points. Companies noted increased costs for PPE, cleaning supplies and raw materials.
This month’s special question asked: “Have your business costs changed during the crisis?”. The majority, at 52.2%, reported an increase in business costs during the pandemic, while only 13.0% saw decreasing costs. Just over a third of respondents noted no changes in their expenses during the crisis.
Posted: September 30, 2020 Wednesday 09:45 AM