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Last Update: 31-Jan-12 10:48 ET
Chicago PMI Dips on Weaker Production and Orders
The Chicago Purchasing Managers Index from Kingsbury International, Ltd., declined from 62.2 in December to 60.2 in January. That is the second consecutive decline and the fourth decline over the past six months, although the January reading still remains well above 50, which is the line of demarcation between expansion and contraction. The Briefing.com consensus expected the Chicago PMI to increase to 62.8.
Production growth slowed in January but remained at a healthy level. The index fell from 64.9 in December to 63.8. The decline was precipitated by a drop-off in new orders (from 67.1 to 63.6) and a contraction in backlogs (from 57.3 to 48.3).
With the contraction in backlogs, a slowdown in new orders in February could cause a larger-than-normal decline in production.
The employment index dipped from 59.2 in December to 54.7 in January. That is its lowest level since August.
Production growth slowed in January but remained at a healthy level. The index fell from 64.9 in December to 63.8. The decline was precipitated by a drop-off in new orders (from 67.1 to 63.6) and a contraction in backlogs (from 57.3 to 48.3).
With the contraction in backlogs, a slowdown in new orders in February could cause a larger-than-normal decline in production.
The employment index dipped from 59.2 in December to 54.7 in January. That is its lowest level since August.
