The Chicago Business Barometer fell 6.1 points to 52.6 in April, down from 58.7 in March to the lowest level since January 2017.
Analyst Opinion of Chicago PMI
The Fed manufacturing surveys were little changed this month – and Chicago ISM declined
Expectations this month from Econoday were 57.0 to 62.0 (consensus 59.0) with the actual at 52.6. A number below 50 indicates contraction.
Shaily Mittal, Senior Economist at MNI Indicators said:
This was a disappointing start to the second quarter, with more firms cutting back on both production and employment against a backdrop of softer domestic demand and the global slowdown. Most Barometer components have dived below their respective 12-month averages, pointing towards greater business uncertainty among firms
The MNI Chicago Business Barometer fell 6.1 points to 52.6 in April, down from 58.7 in March to the lowest level since January 2017. The weakness in the Barometer observed in Q1 continued into Q2, with the April fall led by four of the five Barometer components. Only Order Backlogs increased on the previous month’s reading. New Orders eased for the second consecutive month, dipping below both three- and 12-month averages. Amid weaker orders seen recently, Production pulled back significantly from March, to a level not seen since May 2016. Order Backlogs picked-up, moving above the 50-neutral level after a brief dip into contraction territory in March. There were reports of increased lead times at both domestic and offshore points, putting pressure on backlogs.
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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.
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source and read the full report: Chicago PMI
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