Chicago Business Barometer Pulls Back To Five-Month Low In December

(RTTNews) - Chicago-area business activity grew at a notably slower rate in the month of December, according to a report released by MNI Indicators on Wednesday.

MNI Indicators said its Chicago business barometer dropped to 58.3 in December from 60.8 in November, although a reading above 50 indicates continued growth. Economists had expected the barometer to drop to a reading of 60.1.

With the bigger than expected decrease, the barometer pulled back further off the one-year high set in October and hit its lowest level in five months.

Philip Uglow, Chief Economist of MNI Indicators, said, "It was a disappointing end to the year with the pulse rate of our business panel slowing noticeably in December.

"The trend, however, remains solid and consistent with continued growth in the U.S. economy," he added.

The drop by the business barometer was led a slowdown in production growth, as the production index dropped to 61.6 in December from 66.7 in November.

MNI Indicators said four of the five components that comprise the barometer fell in December, with only the employment index bucking the downtrend.

Order backlogs were the biggest concern for future expansion, MNI Indicators said, as the index dipped into contraction following November's softening in orders.

Reflecting the recent drop in oil prices, the report also said the prices paid index fell to its lowest level since April.