Economy

Chicago PMI Pulls Back Slightly in October

October 30, 2020

The Chicago Business Barometer marked its fourth consecutive month of expansion with a PMI of 61.1 in October. The headline index eased slightly from last month’s reading of 62.4 with only new orders advancing during October, gaining just 0.2 points.

The production index fell 5.9 points and backlogs eased to a two-month low. The inventories index dipped 0.2 percent and supplier deliveries slowed further with firms pointing to impacts from the pandemic.

Prices were relatively stable in October, edging downward just 0.1 points. Firms reported higher prices for steel, wood and chemicals.

Employment levels slipped back into contraction as firms laid off more staff due to the COVID-19 crisis.

Special questions this month focused on remote working and supply chains. Most firms, 45.8 percent, were undecided about making remote working a permanent option for employees, 35.6 percent said they would not and 18.6 percent of firms supported it. The second question asked: “Have you re-evaluated your supply chains, attempting to take China out of the equation?” One-third of firms said they had adjusted supply chains while 47.4 percent had not.

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