Chicago factory PMI edges up in June

Factory activity in the Chicago area continued to shrink in June, the results of a survey showed.

The MNI Chicago Purchasing Managers' Index edged up from 40.4 points for May to 41.5.

That was a bit short of the consensus forecast for an improvement to 44.2.

Survey compiler MNI said that subindices for output and order backlogs inched up, even as all of the others weakened.

Subindices for prices paid and inventories fell the most.

The prices paid sub-index dropped by 7.5 points to 53.5 - its lowest level since April 2020.

That for production rose 3.0 points to 42.6 and that for new orders was down by 0.1 points, the weakest print since November 2022.

In response to a special question regarding whether they were planning to slow hiring given talk of a recession at the end of 2023, 41.7% were expecting to do so, even split between those who said "yes" and those who said "somewhat".

The remainder were also evenly split between those expecting no change and those who were unsure.