Chicago PMI Falls, Misses Consensus

The Chicago PMI fell 3.3 points in September to a 47.1 level that misses Econoday's consensus range with a 10-year low for the production component, at a depressed 40.4, an unwanted headline. Business confidence is another unwanted headline, at 47.3 in a measurement for the third quarter and yet another 10-year low.

New orders fell sharply in the September report, falling 7.6 points to 48.5 which points to generally weak activity for this report this time next month. Employment is deeply below breakeven 50 at 45.6 and near another 10-year low. The sample, not surprisingly, is working down inventories which are at a 3-year low.

This report, though often volatile, is filled with unexpectedly deep negatives and will raise talk of weaker-than-forecast showings for this week's ISM manufacturing and non-manufacturing reports.