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- Chicago business activity declines further in July
Chicago business activity declines further in July
MNI Indicators’
report revealed on Wednesday that business activity in Chicago contracted this
month.
The MNI Chicago
Business Barometer, also known as Chicago purchasing manager's index (PMI) came
in at 44.4 in July, down from an unrevised 49.7 in June. Economists had
forecast the index to increase to 50.6. This marked the steepest contraction in
Chicago's activity since December 2015.
A reading above
50 indicates improving conditions, while a reading below this level shows
worsening of the situation.
According to the report, four of the five components of the headline indicator were in contraction territory this month, with only Supplier Deliveries above 50. Meanwhile, the Production indicator fell 22% m-o-m to hit a 10-year low. Demand remained muted, highlighted by the New Orders indicator that subsided further into contraction. Order Backlogs remained below 50 for the third consecutive month, although it increased slightly on June’s reading. The Employment indicator dropped into contraction for the first time since October 2017 and hit the lowest level since October 2009.
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