Chicago PMI Report Shows Slight Contraction In Manufacturing

Giant swings are common enough for the Chicago PMI which collapsed nearly 6 points in September to a sub-50 reading of 48.7. This indicates slight monthly contraction in the Chicago region's composite activity.

New orders are below 50 as are backlog orders, the latter for an 8th straight month. Chicago-area businesses can't rely on backlogs as much to keep up production which is also under 50 and at a 6-year low. Contraction in prices is deepening.

This report is in line with the bulk of regional and private business data that are pointing at a disappointing month for September, one held back by weak foreign markets and perhaps business jitters tied to losses in the stock market.

Recent History Of This Indicator:
The Chicago PMI is expected to slow to 53.6 in September from 54.4 in August when delays in shipments gave the index a lift. New orders, however, slowed while backlog orders fell into deeper contraction. Production slowed as well.