Institute for Supply Management’s report revealed on Friday that
business activity in Chicago resumed contraction in December.
The Chicago Business Barometer, also known as the Chicago purchasing
manager's index (PMI) came in at 46.9 in December, sharply down from an unrevised 55.8 in the previous month. That pointed to a shrinkage in activity in the Chicago Fed region
after a one-month expansion.
As a reminder, the November growth in activity was the
first one since August 2022, the pace of which was also the strongest since May
2022.
Economists had forecast the indicator to slip to 51.0 in the final month
of 2023.
A reading above 50 indicates an expansion of activity, while a reading
below this level points to a contraction.