Chicago PMI falls more than expected
(MNI Indicators)
The Chicago purchasing manager's index (PMI) fell more than expected to 51.5 in August.
Economists had forecast that the reading dipped slightly to 54.0 from last month's 55.8, according to Investing.com.
"Economic activity slowed down into the summer, suggesting June’s momentum was only a temporary revival in activity," Lorena Castellanos, senior economist at MNI Indicators wrote in the report.
"Overall, it wasn’t a rosy month, with Employment the only measure that gained traction. On a trend basis, though, the July-August growth rates paint a slightly better picture – albeit still weak – than that seen earlier in the year."
The report added that the drop in August was led by "a large setback in Order Backlogs and a deceleration in New Orders."
The Chicago PMI reflects the health of the manufacturing sector in the Chicago area.
A reading above 50 theoretically indicates an expansion, while a reading below 50 suggests a contraction.
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