Chicago PMI drops sharply to 48.7 in November on falling new oders

By FXStreet FXStreet (Mumbai) – Chicago Business Barometer declined 7.5 Points to 48.7. Sharp dip in new orders that fell to their lowest since March led to this massive decline. The Chicago Business Barometer had stood at 56.2 in October. The sharp fall in New Orders has led the Chicago PMI to contract for the sixth time this year.

Both Econoday as well Bloomberg had expected the index to fall to 54.0 in November from October’s 56.2. This indicator had fallen to alarmingly low levels in the beginning of 2015. It has however picked up as the year progressed. Strong gains in new orders and production prompted gains to pick up.

The Chicago PMI figure in October had soared as components for new orders and production posted the best figures of 2015. Production was noted to have surged nearly 20 points in October. Orders can be expected to continue to pick up.

Investors watch out for this data as the distribution of manufacturing and non-manufacturing activity dominant in Chicago is in numerous ways similar to the overall trend in the country. It is not deemed to proper to compare Chicago-PMI with the ISM manufacturing index since the national ISM is only for …read more

Source:: FX Street