Chicago PMI Worse than Expected, but Still Expanding

The Chicago PMI is based on data compiled from purchasing and supply executives in the Chicago-area. The Index measures new orders, backlog of orders, new export orders, imports, production, supplier deliveries, inventories, customers' inventories, employment and prices. It establishes a consensus of economic health for Chicago-area manufacturing. The Chicago PMI for April decreased to 56.2 from the 62.2 reading in March. This also comes in less than the anticipated reading of 60.0. This is essentially bearish for the manufacturing sector, and for general economic health in the United States. The number is sent out by the ISM-Chicago three minutes before the official release time to paid subscribers, so subscribers can take advantage. However, Twitter has killed that advantage. The number is all over Twitter as soon as the number is released to these paying subscribers, so it diminishes most of the value the early release has. According to the report, the April Chicago Business Barometer decreased for a second consecutive month. After five months above 60, the Chicago Business Barometer fell to 56.2, a 29 month low. The index has remained in expansion since October 2009.