Friday, June 28, 2019

Earlier: Chicago PMI "First sub-50 reading since January 2017"

by Calculated Risk on 6/28/2019 01:39:00 PM

From the Chicago PMI: Chicago Business Barometer – Declines to 49.7 in June

The MNI Chicago Business Barometer decreased by 4.5 points to 49.7 in June from 54.2 in May, marking the first sub-50 reading since January 2017.

Business confidence dipped significantly in Q2, with the Barometer averaging 52.2, down 13% on the previous quarter and almost 16% lower than Q2 2018.
“The Barometer entered contraction territory, having remained above 50 for over two years. With customers rethinking their purchases, demand tumbled, and consequently firms pulled back production, weakening overall business sentiment,” said Shaily Mittal, Senior Economist at MNI.

"In coming months, our survey will provide further evidence as to whether the diminished business confidence is temporary amid tariffs woes or more structural calling for some counter measures,” she added.
emphasis added
This was below the consensus forecast of 53.6.