Chicago area factory activity suprises to the upside in December

A slump in factory sector activity around the Chicago area eased more than expected at the end of the year, the results of a closely-followed survey revealed.

Market News International's Chicago Purchasing Managers' Index rose by 2.6 points from November's level to reach 48.9, beating analysts' forecasts for a print of 48.0.

But for the fourth quarter as a whole, the PMI slipped by 1.2 points versus the prior three-month stretch to reach 46.2 - its lowest mark since the second quarter of 2009.

Subindices linked to supplier deliveries and production led the improvement, rising to 55.4 and 47.2, respectively.

The key sub-index for new orders on the other hand slipped marginally, from 49.4 for November to 49.1 in December, reflecting slower demand, MNI said.

Factory gate prices meanwhile jumped 9.2% to reach 58.4 - the highest reading since August.

In parallel, a sub-index for employment "cooled" to 47.4, although it registered the largest quarterly increase, rising 11.1% to 48.9.