The Chicago metropolitan region’s economy grew slightly faster in December despite new stress from the Omicron variant of the coronavirus.
The Chicago Business Barometer, also known as the Chicago PMI, rose to 63.1 points this month from 61.8 in November.
The result was better than expected. Economists polled by the Wall Street Journal had forecast a reading of 62.
The index is made based on surveys of purchasing directors of companies in the area. Any reading above 50 indicates growth and numbers above 60 are considered exceptional.
The index is a good guide for the US manufacturing industry and the US economy as a whole, given Chicago’s diverse regional business mix.
However, not all the data was entirely positive. The employment data fell again to the lowest level since June, reflecting a labor shortage that hinders the normal operation of companies.
“Companies say that finding new employees is a challenge,” says the report.
Chicago’s PMI is the last of the regional manufacturing indices before national ISM data for November is released on Tuesday.
Labor is urgently needed
A labor shortage is one of the cost risks that US companies have faced in the last quarter.
Wages in the United States are rising as the economy continues to rebound from the hit taken by the Covid 19 pandemic, and employers are desperately seeking to attract or retain people.
Figures ending in October reveal that employment costs in the United States rose at the fastest pace recorded in the third quarter, as companies in a variety of sectors increased wages amidst labor shortages.
The US employment cost index rose 1.3% in the third quarter from the previous quarter, according to data from the Labor Department. The indicator increased 3.7% compared to last year.
Reference-www.eleconomista.com.mx