By Xavier Fontdegloria
Business activity in the Chicago area contracted in January for a fifth straight month, according to data from a survey compiled by MNI Indicators released Tuesday.
The Chicago Business Barometer decreased to 44.3 in January from a revised 45.1 in December, missing the 45.3 consensus forecast from economists polled by The Wall Street Journal.
The index suggests activity contracted in January as it came in below 50.
The barometer is compiled after surveying firms in the Chicago area to assess business conditions. The index takes into account five components: new orders, order backlogs, production, supplier deliveries and employment.
The production index rose to 48.6, but still signaled that output contracted over the month as firms reported a slowing economy and scepticism filtering into weak production levels.
The new orders index fell to 40.6, with respondents saying demand conditions remains subdued at the beginning of the year. The orders backlogs index fell to 35.5, reversing December's rise.
The employment index fell slightly to 42.0, a four-month low, with around one quarter of the firms reporting lower employment levels.
The supplier deliveries index increased slightly, pointing to marginally increasing vendor lead times. The prices paid index increased to 72.5 after five months of declines, suggesting an uptick in input price inflation.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
01-31-23 1017ET
