Chicago factory PMI worsens slightly in October

Factory sector activity in the Chicago area worsened slightly in October, according to the results of a closely followed survey.

The Chicago Business Barometer declined from a reading of 45.7 for September to 45.2 in October.

That was a tad worse than the 47.7 point print that analysts had expected.

It also marked the second consecutive decline in the regional Purchasing Managers' Index.

A sub-index linked to production improved by 0.6 points to 45.1 but remained 10 points beneath its 12-month average with labor and materials shortages again cited as issues.

In parallel, the sub-index for new orders fell for a fifth month running, by 3.0 points to reach 39.2.

Both for the headline index as well as for most of the subindices, the 50 point mark was the threshold between expansion and contraction.

The sub-index for employment on the other hand improved by 5.4 points to 45.6, following September's steep fall.

A sub-index for prices paid meanwhile ticked higher by 0.7 points to 74.8 but was 9.6 points below the 12-month average.

"Half of firms experienced increased prices in October, compared to around 80% in the first half of the year," ISM Chicago and Market News International said in a statement.

"Falling container costs and the strong US dollar are contributing to lower logistical costs."