Embargoed until 9:45 AM ET, 29 August 2014 The Chicago Business Barometer surged 11.7 points to 64.3 in August, regaining all the lost ground seen in July, and pointing to continued strength in the US economy.

1. Embargoed until 9:45 A.M. E.T., 29 August 2014
Media Release
Chicago Business Barometer Rebounds 11.7 Points to 64.3 in August
Inventory Build Highest Since October 2006
The Chicago Business Barometer surged 11.7 points to 64.3 in August, regaining all the lost ground seen in July, and pointing to continued strength in the US economy.
Strong growth in the Barometer and three of its key components in August followed a sharp slowdown in July. As expected, it appears that the July lull was temporary and that the momentum exhibited in the Chicago Report in the second quarter has carried through to Q3.
Strong gains in Production, New Orders and Order Backlogs lifted the Barometer in August to the highest since May. Production posted the largest monthly increase on record, rising over 20 points to the highest in nearly ten years. Both New Orders and Order Backlogs rose sharply unwinding all and more of July’s weakening, with the latter moving well out of contraction.
Employment was the only component of the Barometer to fall, although it remained well above the neutral 50 level and continues to point to firm demand for labour.
With expectations for strong future demand, firms built stocks at the fastest pace for eight years. Inventories of finished goods jumped above 60 to the highest since October 2006, coupled with a fourth consecutive monthly increase in Supplier Delivery Times.
Prices Paid also inched up above 60 amid strong demand, although at this level it doesn’t point to a severe inflationary threat.
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Chicago Business BarometerTM
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Editorial content:
Philip Uglow,
Chief Economist, MNI Indicators
Alyce Andres-Frantz
Chicago Bureau Chief, MNI News
Commenting on the MNI Chicago Report, Philip Uglow, Chief Economist at MNI Indicators said, “We had speculated that July’s downturn would prove temporary rather than signal the start of a downward trend. The sharp bounceback in August, with growth in output at the highest for nearly ten years, suggests that growth in the US economy will continue apace in Q3.“

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Copyright© 2014 MNI Indicators | Deutsche Börse Group
Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved.
About MNI Indicators
MNI Indicators specialises in producing business and consumer surveys designed to present an advance picture of the economic landscape and highlight changing trends in business and consumer activity. The timely reports explore attitudes, perspectives and sentiment across the globe, including China, India and Russia. Alongside MNI Indicators’ core focus on consumer and business surveys in emerging markets, MNI Indicators produces the renowned Chicago Business Barometer (Chicago PMI), a key leading indicator of the US economy. MNI Indicators is part of MNI, a leading provider of news and intelligence, a wholly owned subsidiary of Deutsche Börse AG, and one of the largest worldwide exchange organisations.
About ISM-Chicago
ISM-Chicago is a non-profit association dedicated to strengthening the community of purchasing and supply management professionals in the Chicagoland area. As an affiliate of the Institute of Supply Management (ISM), the organization is committed to the ongoing professional development of its members and the purchasing and supply management profession through education, research and communication. For more information on becoming a part of ISM-Chicago, call (847) 298-1940.
Notes to Editors
Please source all information to MNI Indicators.
The MNI Chicago Report is published by MNI Indicators, part of Deutsche Börse Group, in partnership with the ISM-Chicago.
The MNI Chicago Report is published monthly and contains the Chicago Business BarometerTM and a number of other Business Activity and Buying Policy indicators. The data is seasonally adjusted.
The Chicago Business BarometerTM is a closely watched leading indicator of U.S. economic activity and is based on a survey panel of purchasing/supply- chain professionals, primarily drawn from membership of the Institute for Supply Management-Chicago (ISM-Chicago). The survey panel contains both manufacturing and non-manufacturing firms, many with global operations.
The Chicago Business BarometerTM is a composite diffusion indicator made up of the Production, New Orders, Order Backlogs, Employment and Supplier Deliveries indicators and is designed to predict future changes in gross domestic product (GDP).
An indicator reading above 50 indicates expansion compared with a month earlier while below 50 indicates contraction. A result of 50 is neutral. The farther an indicator is above or below 50, the greater or smaller the rate of change.