EmailThe Chicago PMI increased from 52.7 in May to 52.9 in June. That was the first increase since February. The Briefing.com consensus expected the index to increase to 53.0. Production strengthened as manufacturers continued to eat away at their order backlogs. The production index increased from 50.0 in May to 57.0 June, while the order backlog index fell from 46.3 to 42.2 during the same time period.
New orders fell for a fourth consecutive month, declining from 52.9 in May to 51.9 in June. Unless new orders pick up, the current level of backlogs will not be enough to keep production levels above 50.0 -- the expansion/contraction threshold -- for much longer. Manufacturers in the Chicago region seem to believe the slowdown in new order growth is temporary. The employment index increased from 57.0 to 60.4, which is the highest level since February.
