The US manufacturing sector has been weakening. On Wednesday the regional Chicago ISM Manufacturing PMI contracted to the worse level in 4 and a half years to 44.4 in July. It had been expected to be back over 50. Production indicator fell 22% on the month to hit a 10-year low.
The US manufacturing sector has been weakening. On Wednesday the regional Chicago ISM Manufacturing PMI contracted to the worse level in 4 and a half years to 44.4 in July. It had been expected to be back over 50.
Chicago ISM PMI – July US Manufacturing Index
The MNI Chicago Business Barometer in the US decreased by 5.3 points from a month earlier to 44.4 in July 2019, missing market expectations of 50.6 and pointing to the steepest contraction in Chicago’s activity since December 2015
- Four of the five components were in contraction territory this month, with only Supplier Deliveries above 50. The weakness in the Barometer observed in Q2 continued into the current quarter, with the latest outturn making it the weakest start to Q3 since 2009.
- The Production indicator fell 22% on the month to hit a 10-year low. Demand remained muted, highlighted by the New Orders indicator that subsided further into contraction.
- Weaker demand and production led firms to adjust their workforce. The Employment indicator fell into contraction for the first time since October 2017 and hit the lowest level since October 2009.
- Two in five firms expected the economy to see slower growth than currently, with some holding tariffs responsible for the slowdown. The majority, at 46%, did not expect any change while only 14% expected the economy pick up.
- “Firms are not panicking yet, but the latest report isn’t adding to the cheer.”
Chicago Pmi in the United States averaged 54.81 Index Points from 1967 until 2019, reaching an all time high of 78.60 Index Points in January of 1973 and a record low of 21.20 Index Points in June of 1980.
The Chicago PMI (ISM-Chicago Business Barometer) measures the performance of the manufacturing and non-manufacturing sector in the Chicago region. The Index is computed from five weighted raw indexes: Production (0.25), New Orders (0.35), Order Backlog (0.15), Employment (0.10), and Supplier Deliveries (0.15) and then seasonally adjusted to support month-to-month comparisons.
A reading above 50 indicates an expansion; below 50 represents a contraction; while 50 indicates no change. Chicago PMI is released one day before the ISM Manufacturing Index. This page provides the latest reported value for – United States Chicago PMI – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United States Chicago PMI – actual data, historical chart and calendar of releases – was last updated on July of 2019.
Source: Trading Economics
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