Chicago PMI misses expectations in April

The Chicago Purchasing Managers’ index fell to 50.4 in April from 53.6, led by a drop in new orders and a sharp decline in order backlogs.

The data, released by the Institute for Supply Management, marked the lowest reading since December 2015 and missed economists’ expectations of 53.0.

A growing number of panellists were concerned or uncertain about the impact of a rate hike by the Federal Reserve. In a special question, 35.7% of respondents said an interest rate hike in the next six months would not have an impact on business activity, while 35.7% were unsure.

Chief economist of MNI Indicators, Philip Uglow said: “This was a disappointing start to the second quarter, with the barometer barely above the neutral 50 mark in April.

“Against a backdrop of softer domestic demand and the slowdown abroad, panellists are now more worried about the impact a rate hike might have on business than they were at the same time last year.”