Last Update: 10-Oct-14 16:58 ET
- The Chicago PMI fell to 60.5 in September from 64.3 in August. The Briefing.com consensus expected the index to fall to 61.5.
- Even though the PMI dropped more than expected, the current reading is far from a disappointment. Levels have remained above 60 for five of the past six months, and readings above 60 are generally considered too strong for long-term stability. A further decline to 55 would still be considered a relatively strong month for manufacturing activities.
- The production index fell to a still strong 64.9 in September from 74.7 in August. The softness in production was a result of slightly weaker new orders growth. That index fell to 60.0 in September from 65.6 in August. Order backlog levels dropped to 52.5 in September from 58.3 in August.
- Relatively weaker production and demand growth had no effect on employment. The Employment Index increased to 56.2 in September from 55.9 in August.
- The Chicago PMI has little overall economic value, and is only watched by the financial markets because it is usually released one day in advance of the similar national ISM manufacturing survey. A significant move in this regional survey will therefore sometimes be seen as having predictive value for the ISM index.