Contraction in Chicago manufacturing slows in December

The contraction in manufacturing sector activity in the Chicago area slowed some at the end of 2022, the results of a closely followed survey revealed.

A Purchasing Managers' Index compiled by the Institute for Supply Management-Chicago and Market News International rose by 7.7 points to 44.9 in December.

Nevertheless, December's reading still marked a fourth successive month below the 50.0 point threshold that separates an expansion from a contraction, although it did break a three month streak of lower readings.

The key sub-index for new orders rebounded by 13.4 points to 44.1, boosted by last-minute and year-end blanket orders, the survey compilers said.

A sub-index roduction on the other hand only edged up by 3.3 points to 39.2 while that for employment fell by 6.3 points to 40.8.

Yet another sub-index linked to order backlogs soared by 13.7 points to 53.7.

Price pressures dipped alongside with a sub-index tracking the prices paid by companies slipping by 2.1 points to 64.1.

Improved response times saw the sub-index for supplier deliveries increase by 2.8 points to 52.7.