Chicago PMI contracts from August levels, lowest since February

• September Chicago PMI: 64.7 vs. 65 consensus and 66.8 prior; all five main indicators indicated declines with employment being the only one rising.
• Order Backlogs pulled back sharply in September, dropping 20.5 points to a six-month low of 61.1 led by supply shortages that are still weighing on production.
• Supplier Deliveries narrowed 11.6 points to 81.2, the lowest since April, as firms reported worsening port congestion and ongoing problems with ocean, rail trucking, and even air cargo.
• New Orders softened through the month, falling 3.4 points to 64.4, the lowest since March.
• Production inched down marginally dropping 0.3 points to 60.7, but still the lowest reading since June.
• Employment was the only indicator that saw an increase through the month, rising 4.1 points to 52.4, the highest since April.