The market was expecting a value of 50.0 to 50,7 versus the reported value of 50.4. A number below 50 indicates contraction. This 50.4 is only marginally better than October's 49.9.
The Chicago Purchasing Managers reported November's Chicago Business Barometer improved to 50.4. After two consecutive months in contraction, the Business Barometer was led higher by advances in Production, Employment, and Supplier Deliveries while New Orders subtracted from economic activity.
• PRICES PAID: 16 month high; EMPLOYMENT continues on pace with PRODUCTION;
• NEW ORDERS: lowest since June 2009;
• INVENTORIES: lowest since February 2010.
• PRODUCTION MATERIAL and MRO SUPPLIES: shorten to Feb 2010 and Jan 2011 lows, respectively.
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