Chicago PMI dropped to 45.2 in October, the second straight month of contraction. Readings below 50 indicate contraction territory.

by Dismal-Jellyfish

The Chicago PMI is the latest in regional manufacturing data to show declines:

Additionally, the Chicago PMI is the last regional data before the national factory data for October is released Tuesday.

New Orders contracted for the fifth consecutive month, declining by a further 3.0 points to 39.2. Weak economic outlooks are dragging on demand. The indicator last fell below 40 in the initial pandemic shock of 2020.

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Employment also rose, up 5.4 points to 45.6 after recording a stark September decline. The indicator was the weakest in six months barring the September fall.

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Prices Paid saw a small 0.7-point uptick to 74.8 in October (still more costs to pass down). This is 9.6 points below the 12-month average, implying a slower pace of trend price growth. Half of firms experienced increased prices in October, compared to around 80% in the first half of the year. Falling container costs and the strong US dollar are contributing to lower logistical costs.