Chicago business output slipped to in August after hitting a two-month high the month prior, as supply and staffing constraints hit production.
- The Chicago Business Barometer fell to 66.8 in August, down from July’s 73.4. The reading remains above the 50 threshold that separates expansion from contraction.
- Firms attributed the decline to the ongoing lack of raw materials and hiring concerns amid the increase in new orders.
- Production slipped to a two-month low of 61, while new orders declined to 67.8.
- Order backlogs climbed to a record-high 81.6, given the issues on materials, freight inconsistencies, and staffing.
- Supplier deliveries hit a three-month high of 92.8. One respondent said delivery times were the worst in three years.
- Inventories jumped to a five-month high of 48.8 as firms stockpiled amid chain disruptions.
- Prices paid surged to a 42-year high of 93.9 due to more expensive production materials, while demand for labor grew slightly to 48.3.
- The majority of the firms expect the impact of the COVID-19 pandemic on the supply chain to peak in 2022.