The Chicago Business Barometer insignificantly declined but remains in expansion.
From Bloomberg, the market expected the index between 53.0 to 57.5 (consensus 54.9) versus the actual at 54.4. A number below 50 indicates contraction. Chief Economist of MNI Indicators Philip Uglow said,
It was pretty much steady as she goes in August with orders and output just about holding on to July’s gains. While the slowdown earlier in the year looks temporary, we’re still some way below the strong growth rates seen towards the end of 2014.
The Chicago Business Barometer held on to most of July’s gain, falling just a fraction to 54.4 in August from 54.7 in July. While below the highs seen towards the end of last year, it’s still consistent with a bounceback in activity in the third quarter following recent weaker growth. A slight easing in both Production and New Orders prompted the latest decline in the Barometer, with both paring some of the large gains seen in July that had left them at the highest level since January. While New Orders and Production softened in August, both remained above their 12-month averages and significantly up from the depressed levels seen between February and June.
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
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