WASHINGTON (dpa-AFX) - MNI Indicators released a report on Thursday showing Chicago-area business activity unexpectedly slid further into contraction in the month of October.
The report said the Chicago business barometer tumbled to 43.2 in October from 47.1 in September, with a reading below 50 indicating a contraction in regional manufacturing activity. Economists had expected the index to inch up to 48.0.
With the unexpected decrease, the Chicago business barometer slumped to its lowest level since December of 2015.
The unexpected drop by the headline index came as demand weakened significantly, with the new orders index plunging to its lowest level since March of 2009.
The report said the production index rebounded to 46.8 in October but pointed to a contraction for the fourth consecutive month.
On the inflation front, the prices index dipped to 54.8 but continued to indicate growth, as lower steel prices were offset by upward pressure from tariffs.
When asked about the impact of the Federal Reserve's latest interest rate cuts, a majority of firms said they expect no impact.
Meanwhile, 56.5 percent of firms noted a little negative impact from the government-imposed tariffs and 26 percent indicated a major negative effect.
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