Economic Growth Slows In Chicago PMI

General economic growth in Chicago slowed in September based on the Chicago PMI which eased to a still very strong 60.4 from 63.6 in August and 65.5 in July. New orders slowed to a 5-month low and production to a 6-month low. Hiring also moderated reflecting in part what the report says is lack of qualified candidates.

A build in backlogs is a positive while inventories rose on continued reports of pre-buying tied to concerns of shortages. Supplier deliveries lengthened with respondents reporting trucking delays tied indirectly to Hurricane Florence that hit the Carolinas at mid month. Input costs remain generally elevated.

When taking the last three months together, the index averaged 63.2 which is the best quarter so far this year and which puts September's easing in context.