Chicago PMI declines more than expected

The Chicago Purchasing Managers’ index fell to 51.5 from 55.8 in July, led by a large setback in order backlogs and a deceleration in new orders. Economists had been expecting a smaller decline to 54.0.

Order backlogs fell 14.5 points to 41.7, moving back intro contraction territory to the lowest level since April.

Lorena Castellanos, senior economist at MNI Indicators, said: “Economic activity slowed down into the summer, suggesting June’s momentum was only a temporary revival in activity.

“Overall, it wasn’t a rosy month, with Employment the only measure that gained traction. On a trend basis, though, the July-August growth rates paint a slightly better picture – albeit still weak – than that seen earlier in the year.”