Last Update: 30-Sep-15 10:22 ET
- The Chicago PMI declined to 48.7 in September from 54.4 in August. The Briefing.com Consensus expected the index to decline to 52.9.
- It's been an up-and-down year thus far for the manufacturing sector in the Chicago region. Monthly contractions (five times) have occurred more regularly than expansions (four times).
- The September number was notable for the fact that the Production Index dropped to 43.6 from 59.0 in August. That was the lowest reading in production levels since July 2009 and the biggest one-month decline since February.
- The drop in production was a result of an end to a three-month expansion in new orders growth (49.5 in September from 56.7 in August) and the eighth consecutive monthly contraction (46.5 in September from 46.2 in August) in order backlogs.
- On a positive note, the employment index ended four consecutive monthly contractions as the related index increased to 52.3 in September from 49.1 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.