The Chicago PMI is the latest in regional manufacturing data to show declines:
Additionally, the Chicago PMI is the last regional data before the national factory data for October is released Tuesday.
New Orders contracted for the fifth consecutive month, declining by a further 3.0 points to 39.2. Weak economic outlooks are dragging on demand. The indicator last fell below 40 in the initial pandemic shock of 2020.
Employment also rose, up 5.4 points to 45.6 after recording a stark September decline. The indicator was the weakest in six months barring the September fall.
Prices Paid saw a small 0.7-point uptick to 74.8 in October (still more costs to pass down). This is 9.6 points below the 12-month average, implying a slower pace of trend price growth. Half of firms experienced increased prices in October, compared to around 80% in the first half of the year. Falling container costs and the strong US dollar are contributing to lower logistical costs.