Last Update: 31-Jul-14 10:00 ET
- Manufacturing activities in the Chicago region softened significantly in July as the Chicago PMI fell to 52.6 from 62.6 in June. The Briefing.com consensus expected the Chicago PMI to fall to 61.8.
- Production levels barely remained in an expansion as the related index plummeted from 70.1 in June to 51.4 in July. That size of a drop was odd considering new order levels, while notably weaker than the 65.1 reading in June, remained firm at 55.7. Backlogs, however, contracted for the first time since September 2013 as the related index fell to 45.2 from 55.4 in June.
- The weakness in overall production had no effect on employment. The Employment index increased to 59.8 in July from 58.4 in June, which was the best reading since November 2013.
- 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.