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31.05.2016 14:05

Chicago purchasing managers' index slides to 49.3 in May

The Institute for Supply Management released its Chicago purchasing managers' index on Tuesday. The Chicago purchasing managers' index slid to 49.3 in May from 50.4 in April, missing expectations for a rise to 50.9.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

The decrease was mainly driven by drops in new orders and new orders. New orders were down to 48.8 in May from 51.0 in April, while the production index plunged to 47.4 from 54.0.

Order backlogs climbed to 47.7 in May from 38.7 in April, while the employment index rose to 48.3 from 47.5.

"While expectations are that growth in the US economy will bounce back in Q2, the evidence from the MNI Chicago Report shows activity weakening from an already low level," Chief Economist of MNI Indicators Philip Uglow said.

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