The market was expecting a value of 50.0 to 50,9 versus the reported value of 49.9. A number below 50 indicates contraction.
The Chicago Purchasing Managers reported October's Chicago Business Barometer idled, up just 0.2 to a still contractionary 49.9. Business Activity measures reflected weakness in five of seven indexes, most notably as the rate of expansion in Production and Employment slowed while New Orders stalled near neutral and Order Backlogs remained in contraction.
- EMPLOYMENT: 33 month low;
- INVENTORIES: slipped into contraction;
- PRICES PAID: inflation slowed a bit;
- CAPITAL EQUIPMENT: 26 month low;
- PRODUCTION MATERIAL and MRO SUPPLIES: lead times remain above long term averages.
The Chicago ISM is important as it is a window into the national ISM reports which will be issued shortly. When you compare the graph below of the ISM Manufacturing Index against the Chicago PMI - you can see there is a general correlation in trends, but not necessarily correlation in values.
source and read the full report: Chicago PMI