Econintersect: For 23 months straight, the Chicago Purchasing Managers survey has reported an economic expansion – although for August 2011 the index slipped to a 21-month low. The survey showed sizable declines in production and order backlog.
The reason the market looks at this report is that it is released before the national purchasing manager (ISM) reports. Econintersect does not put much credence in surveys as they do not tend to be indicative of underlying economic activity at pivot points.
PRODUCTION posted the second large decline of the year;
ORDER BACKLOGS fell below neutral for the second time this year;
PRICES PAID declined modestly for the 5th time in the last 8 months.
MRO SUPPLIES lead times shortened, erasing the past 2 months increases.
Source: Chicago ISM