Key Points

Chicago Business Barometer Falls to Lowest Level Since May 2020

Key Points:

• Chicago Business Barometer (CBB) dropped 35 points to 379 in April, its fifth consecutive monthly decline.
• The CBB is now at its lowest level since May 2020, during the height of the COVID-19 pandemic.
• The CBB is a closely watched indicator of economic activity in the Chicago region and is often seen as a predictor of national economic trends.

Details:

The CBB is a monthly survey of purchasing managers in the Chicago area. The survey asks about business conditions, including production, orders, employment, and inventories. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

The CBB has been falling steadily since November 2023, when it reached a peak of 61.5. The decline has been driven by a number of factors, including the war in Ukraine, rising inflation, and concerns about a possible recession.

The CBB's decline is a worrying sign for the US economy. The Chicago region is a major manufacturing center, and the CBB is often seen as a leading indicator of national economic activity. The CBB's decline suggests that the US economy may be slowing down more than expected.

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