Chicago Business Activity Slumps Further, MNI Survey Suggests

By Joshua Kirby

Business activity slowed again in the Chicago area this month, disappointing hopes for a recovery, according to a survey published Tuesday.

The Chicago Business Barometer, compiled by MNI Indicators, deteriorated to 37.9 in April from 41.4 in March, defying expectations for an uptick to 45.0, which would have indicated a gentler rate of slowdown in the area's business activity.

The barometer is compiled through surveys of firms in the Chicago area in order to assess business conditions and components including new orders, order backlogs, production, supplier deliveries and employment.

Four of those five components fell in April, pushing the overall index to its lowest level in close to 18 months. Lower production and new orders suggest continued weakness in demand, and entailed a drop in the employment index. An uptick in the gauge of order backlogs helped offset this to some extent.

Price pressures also increased, and by the largest amount since August last year, suggesting inflation is some way from easing sustainably in the Chicago area.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 30, 2024 10:15 ET (14:15 GMT)

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