Chicago Business Barometer Unexpectedly Edges Lower In September

(RTTNews) - A report released by MNI Indicators on Tuesday expectedly showed a modest decrease by its reading on Chicago-area business activity in the month of September.

MNI Indicators said its Chicago business barometer edged down to 40.6 in September after falling to 41.5 in August, with a reading below 50 indicating contraction. Economists had expected the index to rise to 43.0.

With the continued decrease, the index has now almost fully unwound the 6.7 point jump seen in July and remains below 50 for the twenty-second consecutive month.

The unexpected dip by the headline index was driven by another sharp drop by the new orders index alongside declines by the supplier deliveries and employment indexes, MNI Indicators said.

The report said the new orders index plunged by 7.0 points during the month, leaving it just above the year-to-date low seen in May.

The supplier deliveries also tumbled by 6.4 points to its lowest level since January but remained above 50, while the employment index slumped by 4.1 points to its lowest reading since June 2009.

MNI Indicators said the prices paid index also eased 0.4 points to the lowest level since January, although it index remains above last year's average.

Meanwhile, the report said the production index rose by 3.8 points, marking the first increase after five consecutive declines.