Chicago PMI Slumps to 41.5, Undershooting Forecasts

Manufacturing activity in the Chicago region contracted sharply in August, with the MNI Chicago Business Barometer falling to 41.5 from 47.1 in July. Economists surveyed before the release had expected a more moderate decline to 46.0. A reading below 50 indicates shrinking activity, and the latest figure marks the second consecutive month the index has been in contraction territory. The weaker-than-expected result suggests continued pressure on Midwest manufacturers amid a broader slowdown in U.S. factory output.