Midwest business barometer shows contraction in October

CHICAGO Wed Oct 31, 2012 10:00am EDT

CHICAGO (Reuters) - Business activity in the Midwest contracted for a second month in October, a report showed on Wednesday, although the forward-looking measure for new orders rose.

The Institute for Supply Management-Chicago business barometer rose slightly to 49.9, from 49.7 in September. Economists had forecast a reading of 51.

A reading below 50 indicates contraction in the regional economy.

The forward-looking new orders index rose to 50.6 from 47.4. while the gauge of employment sank to 50.3, from 52.0. (Reporting by Ann Saphir; Editing by Chizu Nomiyama)

Recommended Newsletters

Reuters U.S. Top News
A quick-fix on the day's news published with Reuters videos and award-winning news photography and delivered at your choice of one of four times during the day.
Reuters Deals Today
The latest Reuters articles on M&A, IPOs, private equity, hedge funds and regulatory updates delivered to your inbox each day.
Reuters Technology Report
Your daily briefing on the latest tech developments from around the world from Reuters expert tech correspondents.