Last Update: 02-Jul-15 16:45 ET
- The Chicago PMI increased to 49.4 in June from 46.2 in May. The Briefing.com Consensus expected the Chicago PMI to increase to 50.0.
- According to the report, manufacturing activity in the Chicago region has contracted in 4 out of the last 5 months.
- The contraction in production eased in June, as the related index increased to 49.8 from 45.8 in May. Unfortunately, the contraction may not end next month. While new orders managed to break free of their contraction cycle, evidenced by the index rising to 51.7 from 47.5, the pullback in backlogs got much worse.
- The Order Backlogs Index fell to 41.0 in June from 47.3 in May. That was the lowest reading since September 2009.Without a steady supply of backlogs, an upturn in production will be highly reliant on the volatile new orders growth.
- The Employment Index fell to 45.7 in June from 48.0 in May. That was the lowest reading since November 2009.
- 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.