The headline index for the Chicago Business Barometer, widely known as the Chicago Purchasing Managers Index, dropped by 3.8 points in September to a reading of 60.5.
In August, the index was 64.3. Despite the fall, the index reading of 60.5 is still considered “robust,” the Institute for Supply Management said.
Consensus estimates compiled by various news organizations called for the September headline index to come in between 59 to 65. 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 comes out one business day later and is scheduled for release on Wednesday.
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.
