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The numbers: A measure of factory activity in the Midwest showed contraction but improved slightly in November from a multi-year low reported a month earlier. Still, the reading was below what economists were expecting.
The Chicago Purchasing Management Index registered at 46.3 in November from an unrevised 43.2 in October. The October reading was the lowest level since December 2015. Economists had expected a November reading of 46.5, according to the StreetAccount consensus on FactSet. Some surveys had expectations as high as 47.
Any reading below 50 indicates deteriorating conditions.
Big picture: The Chicago PMI can be more volatile than the national ISM manufacturing index. Manufacturing is facing the brunt of a global trade slowdown as the U.S. and China tussle and the Midwest is being particularly hammered. Separate broader data out Wednesday showed a defense sector-led gain for durable-goods orders in a report that also showed the longer-run trend in business investment remains soft. And, the U.S. economy grew at a 2.1% annual pace in the third quarter, a few ticks higher than previously estimated.
Market reaction: Stocks DJIA, -0.12% SPX, +0.11% gained, with Wall Street looking to build on Tuesday records, after the economic data was on net rosier than expected and as hopes persist for a trade-pact resolution. Trading volumes were noticeably thinner ahead of the Thanksgiving Day holiday.
