FX.co ★ Chicago Business Barometer Unexpectedly Drops To Lowest Level Since November 2022

On Tuesday, MNI Indicators published a report indicating that business activity in the Chicago area, unexpectedly, declined at an accelerated pace in April.

According to the report, the Chicago business barometer declined to 37.9 in April from 41.4 in March, a reading below 50 signifies contraction in business activity. This negative shift was unpredicted, as economists expected the index to rise to 44.9.

The report further noted a sharp decline in the business barometer, reaching its lowest level since November 2022.

In addition, MNI Indicators reported that the production index has been decreasing for the fifth consecutive month, resembling levels last seen in November 2022.

The new orders index, which also reached its lowest reading since November 2022, echoed this downward trend. This decrease is driven by an increase in respondents who reported fewer new orders.

The report also stated that the employment index has taken a hit as it fell by 8.5 points, completely reversing the rebound observed last month. This slump marks the second lowest level since the onset of the pandemic.

Despite these declines, the prices paid index witnessed a surge of 6.7 points, marking its highest level since August 2023, according to MNI Indicators.