The headline index for the Chicago Business Barometer, widely known as the Chicago Purchasing Managers Index, fell by 5.4 points in November to a reading of 60.8, according to a report released Wednesday.
The index had stood at 66.2 in October, when it rose 5.7 points to its best reading of the year on the strength of a double-digit gain in new orders.
Consensus estimates compiled by various news organizations called for the November headline index to come in around 63 to 63.2. The Chicago report tends to be watched closely as a sign of strength in the Midwestern manufacturing sector and as a possible precursor to the Institute for Supply Management’s PMI for the entire nation, which is scheduled for release on Monday.
Readings above 50 in such diffusion indexes are seen as a sign of economic growth, and vice-versa. The farther an indicator is above or below 50, the greater or smaller the rate of change.
