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Chicago Purchasing Managers Index fell 3.3 points to 47.1 in September
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The Chicago Business BarometerTM, produced with MNI, fell 3.3 points to 47.1 in September, following August’s rebound to 50.4.
Business confidence dropped below the 50-mark to 47.3 in Q3, leaving the index at the lowest level on a quarterly basis since Q3 2009. The index fell 4.9 points compared to the previous quarter.
Supplier Deliveries and Employment are the only Business Activity components higher on the month, increasing to 54.8 and 45.6, respectively.
Production saw the largest decline, falling by 15.8% or 7.6 points, to 40.4, the lowest since May 2009. Demand slowed in September, indicated by a sharp fall in New Orders, which shifted back into contraction by ticking down 7.6 points to 48.5.
Order Backlogs fell by 8.9% to 46.8 in September after rebounding to 51.3 in August. However, the component rose by 2.8 points overall in Q3, averaging 47.2 across the period.
Inventories slipped further into contraction, with the index lower by 6.2% to 41.7. The index hit a fortymonth low in September, highlighting that firms continued to run down inventories.
Labor demand improved slightly to 45.6 in September, but the quarterly average fell to 44.1, recording the weakest quarter since Q4 2009.
Prices at the factory gate saw a modest monthly decline, although it rose 4.1 points to 57.7 in Q3. There was anecdotal evidence of tariffs affecting prices and business activity.
This month’s special question asked firms – “How see supplier delivery times faring in the next three months?” The majority (65%) expect supplier delivery times to remain unchanged, while 24% anticipate longer times and 11% forecast shorter delivery times.
Posted: September 30, 2019 Monday 09:45 AM