The Chicago Business Barometer fell 3.9 points to 43.2 in October, the lowest level since December 2015.
Analyst Opinion of Chicago PMI
The Fed manufacturing surveys were little changed this month showing little growth – and the Chicago Fed is consistent with the other surveys.
Expectations this month from Econoday were 47.6 to 49.0 (consensus 48.0). A number below 50 indicates contraction.
The index slipped further into contraction with a second straight sub-50 reading. The survey points to further weakness in business activity, with the threemonth average falling further to 46.9. Only two of the major components saw a monthly decline, although both New Orders and Order Backlogs fell sharply in October. While demand weakened significantly in October — New Orders declined to 37.0, its lowest since March 2009 — Production bounced up to 46.8, although the indicator has been in contraction since July.
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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 (graph above) – there is a general correlation in trends, but not necessarily correlation in values.
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source and read the full report: Chicago PMI
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