Econintersect: The May 2012 Chicago Purchasing Managers index (Chicago PMI) declined sharply for the third consecutive month, but this index has shown continued expansion for the past 31 months. The Chicago ISM stated:
The Chicago Purchasing Managers reported the May Chicago Business barometer decreased for a third consecutive month to its lowest level since September 2009. The short term trend of the Chicago Business Barometer, and all seven Business Activity indexes, declined in May. Among the Business Activity measures, only the Supply Delivery index expanded faster while Order Backlogs and Inventories Contracted. The Production index fell to neutral while, inexplicably, measure of Business Policy advanced.
This survey is of interest to those who watch Purchasing Manager’s data – as this survey is used as a expectations yardstick for the national ISM manufacturing release next week.
BUSINESS ACTIVITY:
- PRODUCTION and NEW ORDERS lowest since September 2009;
- PRICES PAID lowest since September 2010;
- EMPLOYMENT rate of growth slowed
BUYING POLICY:
- PRODUCTION MATERIAL, M.R.O. SUPPLIES and CAPITAL EQUIPMENT lead times all lengthened.
This month’s seasonally adjusted level of 52.7 (April level was 56.2) remains in territory normally associated with economic expansion. The market was expecting 55.0 to 57.0.
This is a survey, and not hard data.
source: Chicago PMI
