Chicago PMI drops in February as new orders hit six-month low

Register now

The Chicago Business Barometer declined to 61.9 in February from 65.7 in January.

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.

IFR Markets predicted a 64.6 reading for the index.

“Business activity continued to expand in February, although at a softer pace than in January,” according to a release, “All five of the Barometer components receded on the month, but despite a second straight monthly fall, the Barometer was still up 8% on last February and above the 2017 average of 60.8.”

“As in January, firms reported a slower pace of both incoming orders and output in February,” the release noted. “The New Orders indicator fell to a six-month low, contributing the most to the Barometer’s decline, while the Production indicator also fell in February, down to a level last seen lower in September. Despite trending lower recently, however, both indicators remain elevated relative to recent years.”

For reprint and licensing requests for this article, click here.
Economic indicators