Chicago PMI drops sharply in September

Business activity in the Chicago area diminished rapidly in September amid weakness in measures for orders, employment and supplier deliveries.

Market News International's Chicago Business Barometer fell from a reading of 52.2 for August to 45.7 in September - a more than two-year low.

Economists had penciled-in a reading of 51.8.

Gauges tracking production orders, new orders, employment and supplier deliveries all declined to summer 2020 lows.

Subindices for employment, order backlogs and production weakened by the most.

A special question asking firms whether they were considering new hires in the back half of the year revealed that 41% of companies were intending to do so, albeit by less than originally planned.

A third of companies on the other hand said that they were foregoing new hires, 2.6% were anticipating severances and 23.1% remained unsure of their employment plans for the second half of 2022.