Chicago PMI Drops to 52.6 in July from 62.6 in June

The Chicago Purchasing Managers' Business Barometer plunged to 52.6 in July from 62.6 in June, the National Association of Purchasing Management-Chicago said Thursday.

This was the largest one month drop since October 2008. The index is now at its lowest level since June 2013

The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.

Economists polled by Thomson Reuters predicted a 63.0 reading for the index.

"In spite of the sharp decline this month, feedback from purchasing managers was that they saw the downturn as a lull rather than the start of a new downward trend," according to a press release. "This was especially so given the recent strong performance and the fact that Employment managed to increase further in July. Nonetheless, following a strong Q2, this was clearly a poor start to Q3 and as such tempers some of the increased optimism in recent months."

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