Chicago Business Barometer Falls Sharply Below Expectations in August

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Aug 29 2025

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Source: NASDAQ.COM

Chicago Business Activity Report

Significant Decline in Business Barometer: The Chicago business barometer fell sharply to 41.5 in August, down from 47.1 in July. A reading below 50 indicates contraction, and this drop was more severe than the anticipated decline to 46.0 by economists.
New Orders Index Drop: The decline in the headline index was primarily influenced by a significant drop in new orders, which plummeted by 10.8 points.
Employment and Production Indices: The employment index decreased by 5.9 points, reaching its lowest level since June 2020. Additionally, the production index fell by 3.6 points, marking the weakest level since December 2024.
Inflation Indicators: On the inflation side, the prices paid index contracted by 8.3 points for the second consecutive month, although it remains above the average for 2024.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.