Chicago PMI falls less than expected in December

Economic activity in the Chicago area deteriorated less than expected in December, according to data released on Friday.

The MNI Chicago Business Barometer fell to 65.4 this month from 66.4 in November, but it was still better than expectations for a reading of 62.0.

Three out of the five barometer sub-components lost ground on the month, but solid gains in production and order backlogs helped the headline index maintain most of November’s eight point rise.

MNI Indicators economist Jai Lakhani said: "The MNI Chicago Business Barometer saw 2018 out in good health, assisted by a firm uptick in production, cementing the best calendar quarter outturn in a year.

"Encouragingly, inflationary pressures subsided for a fifth consecutive month and should this continue, it will ease the burden on firms‘ productive capacities. Still, concerns over tariffs continue to linger in the background and stir uncertainty."