Chicago PMI Fell in August
The Chicago Business Barometer, also known as the Chicago Purchasing Manager's Index, is similar to the national ISM Manufacturing indicator but at a regional level and is seen by many as an indicator of the larger US economy. It is a composite diffusion indicator, made up of production, new orders, order backlogs, employment, and supplier deliveries compiled through surveys.
The latest Chicago Purchasing Manager's Index, or the Chicago Business Barometer, fell to 66.8 in August from 73.4 in July, which is in expansion territory. Values above 50.0 indicate expanding manufacturing activity.
Here is an excerpt from the press release:
The Chicago Business BarometerTM, produced with MNI, fell to 66.8 in August, the lowest reading since June after climbing to a two-month high in July. Order backlogs rose sharply while production sank. Firms say the available supply of raw materials and workers isn’t sufficient to keep up with new orders.
Among the five main indicators, Order Backlogs saw the largest increase. That was followed by Supplier Deliveries, while Production saw the largest decline. [Source]