The Chicago PMI fell to 40.6 from a previous reading of 41.5, marking a decline of 0.9 points. This decrease indicates a further contraction in business activity in the Chicago area, as the index remains below the 50-mark threshold that separates expansion from contraction.
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The actual figure of 40.6 also came in below the analyst estimate of 43.0, suggesting a more pronounced slowdown than anticipated. This unexpected weakness may weigh on industrial and manufacturing stocks, as it reflects softer business conditions. The market impact could be short-term, driven by sentiment, as investors reassess growth prospects in the manufacturing sector.