The Chicago Business Barometer™, produced with MNI slowed 5.6 points to 41.5 in August. This almost fully unwinds the rise seen in July. The index has now been below 50 for twenty-one consecutive months.

The decline was driven by a sharp pullback in New Orders, alongside falls in Employment, Production and Order Backlogs. This was partly offset by a rise in Supplier Deliveries.

• New Orders dropped 10.8 points. This was the largest fall since September 2023, and was driven by a decrease in the proportion of respondents reporting more new orders and an increase in the proportion reporting fewer new orders. 
• Employment compressed 5.9 points to the lowest since June 2020. The index has now more than unwound the 8.3-point increase seen in May. 
• Production softened 3.6 points to the weakest level since December 2024. This marks the fifth consecutive decline in Production. 
• Order Backlogs eased 1.4 points
• Supplier Deliveries increased 5.8 points. For the second month this year, no respondents reported faster supplier deliveries. 
• Prices Paid contracted 8.3 points for the second consecutive month. However, the index remains above the 2024 average. 
• Inventories weakened 2.3 points.

The survey ran from August 1 to August 11.