The Chicago Business Barometer (also known as the Chicago PMI) fell to 52.8 in March 2026, down from a nearly four-year high of 57.7 in February. Despite the decline, the reading remains above 50, indicating that the Chicago-area economy is still expanding, though at a significantly slower pace.
March 2026 Key Data
The report, released on March 31, 2026, missed economist expectations of a 54.0 to 55.1 reading.
- Headline Index: 52.8 (Previous: 57.7).
- Employment: Weakened by 12.8 points, falling back into contractionary territory after only one month of growth.
- Production: Dropped by 9.3 points as fewer firms reported increased output.
- New Orders: Softened by 7.8 points but remained in expansion territory for the third straight month.
- Order Backlogs: Hit their highest level since December 2022, rising 6.4 points.
- Prices Paid: Rose 3.4 points to its highest level since December, driven by rising metal costs and geopolitical tensions.
Economic Context
- Expansion Streak: This marks the third consecutive month of growth for the region's business activity.
- Sector Health: While the manufacturing sector remains in expansion, the sharp drop in the employment and production sub-indices suggests growing caution among firms.
- Forward Guidance: The index is considered a leading indicator for the national ISM Manufacturing PMI, which is typically released one day later.
Would you like to see how this compares to the national manufacturing data expected tomorrow, or are you interested in upcoming business networking events in Chicago?
All responses may include mistakes. For financial advice, consult a professional. Learn more
Add comment
Comments