Block quotations–another PUGS correction!

I recently came across something in The Chicago Manual of Style that surprised me.

CMS rule #2.18, “Prose Extracts,” says that block-indented quotations should NOT have an additional first-line paragraph indent. If the quotation consists of more than one paragraph, subsequent paragraphs should have an additional first-line paragraph indent (using the tab key or the software’s paragraph indentation feature). But not the first paragraph of the quote.

This is contrary to what I have in my Proofreading Secrets of Best-Selling Authors book as well as to what I’ve been doing for my editing clients.

So now I’m wondering what publishers have to say about this.