Chicago PMI Slips to 49.3 in May from 50.4 in April

The Chicago Purchasing Managers' Business Barometer dropped to 49.3 in May from 50.4 in April, the National Association of Purchasing Management-Chicago said Tuesday.

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.

This was the sixth month in the past 12 that the reading was below 50.

"Following the decline in April, the latest results show activity stumbling in the second quarter, following only moderate growth in Q1," according to a release. "Barring a solid revival in June, Q2 could be the weakest outturn since Q4 2015 given the April-May average of just 49.9."

Economists polled by Thomson Reuters predicted a 50.7 reading for the index.

"The Barometer's decline was led by a 6.6 point fall in Production and was accompanied by a mild setback in New Orders, with both falling below 50," according to the release. "While these were the only components that fell between April and May, out of the five components which make up the Barometer, four of them were in contraction. Only Supplier Deliveries was above 50."

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