Chicago PMI Slips to 66.8 in August, Remains Strong Historically

The Chicago Business Barometer declined to 66.8 in August, according to MNI Indicators, the fourth-highest pandemic-era reading. The August PMI is down 6.6 points from the month prior. MNI reports that order backlogs rose significantly in August, while production decreased. Firms say they are unable to keep up with new orders due to limited raw material availability and staffing issues.

Order backlogs jumped 11.6 points due to a shortage of materials, freight inconsistencies, and insufficient staff. Supplier deliveries increased to a three-month high, with one respondent reporting ‘the worst delivery times in three years.”