An index figure above 50 indicates that the business activity is growing or improving, a figure below 50 that it is shrinking. The further the figure above or below 50, the faster the growth or contraction.
The current business conditions index was at 58.24 in September and was hitting levels around 80 as recently as early last year.
Although other indexes had showed growth slowing earlier this year, the index for new orders had been holding up fairly well until September, when it fell to 52.80 from 62.32 in August. But the index dropped to 45.16 in October, the first time it has showed a contraction.
The indexes indicating inflationary effects also declined sharply, one of the few positive indicators in an overall negative result.