Chicago PMI Drops in August and Misses Market Expectations

2025-08-29 13:51 By Dongting Liu 1 min. read

The Chicago Business Barometer declined to 41.5 in August 2025 from 47.1 in July, missing market expectations of 46.

The index remained below the 50-point threshold for the 21st consecutive month, signaling continued contraction in business activity.

The decline was primarily driven by a sharp drop in new orders (-10.8 points), the largest since September 2023, followed by a decrease in production (-3.6 points), marking the fifth consecutive monthly decline and the weakest level since December 2024.

Order backlogs fell (-1.4 points), while inventories declined (-2.3 points), reflecting reduced demand and cautious stockpiling.

Supplier deliveries rose (+5.8 points), partially offsetting the slowdown, while inflationary pressures eased, with the prices paid index falling (-8.3 points), matching July’s pace.



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