The market was expecting a value of 52.0 to 52.9 versus the reported value of 49.7. A number below 50 indicates contraction.
The Chicago Purchasing Managers reported the Chicago Business Barometer fell to 49.7, its lowest level in three years. Among the Business Activity measures, five of seven posted declines as New Orders fell below 50 and Order Backlogs contracted for the fourth of the past five months. Prices Paid showed the biggest gain in nearly two years and Supplier Deliveries moved back above 50.
BUSINESS ACTIVITY :
• EMPLOYMENT: 2 1/2 year low;
• NEW ORDERS, ORDER BACKLOGS, and SUPPLIER DELIVERIES: 3 month moving averages lowest since mid 2009;
• PRICES PAID: third consecutive monthly gain;
• CAPITAL EQUIPMENT: 17 month low.
The Chicago ISM is important as it is a window into the national ISM reports which will be issued shortly. When you compare the graph below of the ISM Manufacturing Index against the Chicago PMI - you can see there is a general correlation in trends, but not necessarily correlation in values.
source and read the full report: Chicago PMI