The market was expecting a value of 51.5 to 52.0 versus the reported value of 49.0. A number below 50 indicates contraction.
The Chicago Purchasing Managers reported April's Chicago Business Barometer fell 3.4 to 49.0, a 3-1/2 year low. Except for a minor gain in New Orders, all Business Activity measures weakened in April with five of seven now in contraction.
- SUPPLIER DELIVERIES, PRICES PAID, and PRODUCTION: all lowest since 2009;
- ORDER BACKLOGS: ten months of contraction in the past 12 months;
- EMPLOYMENT: third month over month decline.
- CAPITAL EQUIPMENT longest since August 2012;
- MRO SUPPLIES shortest in five months.
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 (graph above) - there is a general correlation in trends, but not necessarily correlation in values.
source and read the full report: Chicago PMI