Institute for Supply Management’s report showed on Thursday that
business activity in Chicago shrank
again in October and at a faster pace than
in September.
The Chicago Business Barometer, also known as the Chicago purchasing
manager's index (PMI) came in at 41.6 in October, down from an unrevised 46.6 in the previous month. That pointed to the 11th straight month of
a contraction in activity in the Chicago Fed region.
Economists had expected the indicator to rise to 47.0 in October.
A reading above 50 indicates an expansion of activity, while a reading
below this level points to a contraction.
According to the report, the decrease in the index was due to declines
in four of the five subcomponents - Order Backlogs (-8.5 points), Production (-7.8
points), Employment (-5.5 points) and New Orders (-4.6 points). Meanwhile, Supplier
Deliveries (+6.2 points) was the only subcomponent that increased in October.
The report also revealed that Prices Paid fell by 7.0 points, after
reaching the highest level since August 2023 in September.