The Chicago purchasing managers index fell to 60.5 in September from 64.3 in August.
This was a bit worse than the 62.0 expected by economists.
Any reading above 50.0 signals growth.
“Despite September’s fall, the Barometer stands above Q1’s level and the 10-year average of 55.8, with respondents deeming activity levels as “strong” and “surging”, aided by ongoing demand, successful sales promotions and organic growth, all of which called for inventory builds,” ISM-Chicago writes.
Here’s an interesting nugget from the report: “There was a surprisingly sharp increase in stocks with firms adding inventories of finished goods at the fastest pace since February 1973. Feedback suggested firms were preparing for robust sales forecasts and potential spikes in unplanned orders.”
Here’s to hoping that inventory actually gets sold.