Institute for Supply Management’s report revealed on Friday that
business activity in Chicago shrank
again in January 2025 albeit at a slightly
softer pace than in December 2024.
The Chicago Business Barometer, also known as the Chicago purchasing
manager's index (PMI) came in at 39.5 in January, up from an unrevised 36.9 in the previous month. This marked the first increase in the
indicator in four months, which, however, remained in the contraction territory
for 14 months in a row (a reading above 50 indicates an expansion of activity, while a reading
below this level points to a contraction).
Economists had expected the indicator to improve to 40.0 in January.