The Chicago Business Barometer, also known as the Chicago PMI, had a disappointing performance in September, registering a reading of 44.1. This marked its first decline in three months. Economists were expecting a slightly better reading of 47, according to a Wall Street Journal poll.
A reading below 50 indicates a contraction in activity, and unfortunately, the index has been stuck below this threshold since September of last year. This signifies ongoing challenges in the business sector.
Taking a broader look at regional manufacturing surveys, we can see a mixed picture. In September, the Philadelphia Fed's gauge of regional business activity fell into negative territory, suggesting a decline. On the other hand, the New York Fed's Empire State business conditions index showed a sharp rise, indicating improving economic conditions.
Despite the disappointing performance of the Chicago PMI, U.S. stocks were still showing early signs of growth on Friday. The S&P 500 SPX and Dow Jones Industrial Average DJIA posted modest gains.
Overall, while there are some positive indications in certain regions, it's evident that the business sector faces challenges and uncertainties. The next release of national ISM data will provide further insights into the current state of the economy.
