Chicago Business Barometer Falls to 55.3 in October, Missing Forecasts but Signaling Continued Growth

Growth in Chicago-area business activity slowed in October, with the MNI Indicators Chicago business barometer falling to 55.3 from September's spike to 58.8, the firm reported Friday. The reading remains above 50, indicating continued expansion, though it fell short of economists' expectations of 56.0. The decline partly reflected a 10.3-point drop in the supplier deliveries index, which stayed in expansionary territory. Respondents reported mixed conditions, citing slow deliveries despite shorter lead times and persistent delays out of Asia. The production and order backlogs indexes fell 5.2 and 4.4 points, respectively, while new orders edged down 0.6 points. The employment index surged 10.3 points, returning to expansion and reaching its highest level since April 2021. The prices paid index jumped 8.9 points to its highest since December 2021, with respondents citing cost pressures from chemical- and petroleum-based inputs, fuel surcharges and freight costs.