Chicago Manufacturing Hits Four-Year Low

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The Chicago "Business Barometer" fell sharply, to 51.6 for June, according to an Institute for Supply Management and MNI report (link opens as PDF) released today. After hitting a 14-month high of 58.7 in May, June's report clocks in 7.1 points lower, at 51.6, its largest drop in over four years. Analysts had expected only a slight decrease to 55.

The Chicago Business Barometer is based on a survey of purchasing and supply-chain professionals, and is closely watched by analysts as a possible leading signal of economy growth. A barometer reading above 50 indicates growth, while below 50 denotes contraction.

"Activity dropped back in June following the large rise in May," said MNI Chief Economist Philip Uglow in a statement. "The trend level of the Barometer has picked up since the fourth quarter of 2012, and while these latest data point to some weakening between the first and second quarter, it is too early to say if this will continue."

The metric is made up of five separate components. Employment posted the only gains, while order backlogs fell to their lowest level since September 2009. Although new orders fell from their 58.1 May reading, June's 54.6 level could still signal solid growth ahead.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2516424, ~/Articles/ArticleHandler.aspx, 9/25/2016 5:04:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes