Chicago PMI dips in October

Factory activity in the Chicago area slowed a tad in October, but continued to grow at a brisk pace, according to the results of a closely-followed survey.

Market News International's Chicago Purchasing Managers Index dipped from a reading of 62.4 for September to 61.1.

That beat economists' forecasts for a reading of 58.5.

October's headline PMI reading signalled the fourth consecutive month of growth in the sector, following a year-long decline as indicated by readings below the 50.0 point level.

The slowdown was chiefly due to slower levels of output, although staffing levels continued to decline, MNI said.

"Anecdotal evidence provided mixed signals, with some firms noting a drop in demand, while others saw a stable level of orders and production or a gradual improvement in business activity," the survey compiler added.

In a special question this month, purchasing managers were asked whether they had looked at taking China out of their supply chains.

A majority of responses, or 47.4%, said they had not re-evaluated their supply chains, but a third had adjusted them.