Chicago PMI rises more than expected, but downturn continues

The downturn in business activity in the Chicago region eased slightly in September but remained in negative territory for the 10th straight month.

The Chicago Business Barometer purchasing managers' index (PMI) increased to 46.6 this month, from 46.1 in August, rising for the second straight month.

This was above the consensus forecast of 46.2.

Nevertheless, the PMI still hasn't risen above the key 50-point threshold which separates contraction and growth since November 2023.

According to the Institute for Supply Management, the increase was due to significant improvements in two of the five subcomponents: order backlogs and employment.

However, continued reductions in supplier deliveries, new orders and production partially offset upside to the main index.