Chicago Business Activity Expands At Slower Pace in March

By Jessica Coacci

Business activity in the Chicago area rose at a slower pace in March, coming off of three consecutive months of increases.

The Chicago Business Barometer, compiled by MNI Indicators, fell to 52.8 in March from 57.7 in February. Economists polled by The Wall Street Journal had expected a reading of 55.1. A measurement above 50 indicates an expansion in activity.

The index decline was driven by employment, production and new orders. Employment contracted after one month above 50. Production lightened by 9.3 points, and was driven by a decline in the number of respondents reporting higher production. New orders softened by 7.8 points, but were still above 50 for the third consecutive month.

Order backlogs grew, with the index hitting its highest level since December 2022.

The prices paid index grew to its highest level since December. Respondents noted that metals were already driving cost increases, and that geopolitical tensions have driven up other costs too, the survey said.

Write to Jessica Coacci at [e-mail]

(END) Dow Jones Newswires

03-31-26 1022ET