With the ongoing shortage of labor and materials, the Chicago business barometer falls from 65.2 to 56.3, even businesses are coming back at the tail end of the Omicron wave.
Prices and inflation are still high, which means that it will be more difficult, however, for dormant businesses to restart themselves.
With lower number of workers and materials, meeting consumer demand is more difficult. Based on this, we should an increase in price level (excluding the fact that prices have already started to rise due to the Russian invasion of Ukraine).
I theorized earlier last month that unemployment should rise as well due to the increase in wages. However, based on today's news, I find it difficult to support this claim, as the size of LFPR is quite vague at the moment. In fact, it is being forecasted that unemployment will drop to 3.9% from 4.0%.
Source: https://www.marketwatch.com/story/chicago-economy-slows-in-february-as-business-barometer-falls-to-18-month-low-11646060228?mod=economy-politics
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