May Chicago PMI Preview
May Chicago PMI is expected at 48.5 from 48.3 in April, 48.2 in March and 44.5 in February, which was the lowest reading on record.
The New Orders Index came in at 53 in April from 53.9 in March. The Shipments Index was 53 from 50.4 in March, and the Employment Index was 35.3 from 44.6 in March. The Prices Paid Index came in at 82.9l from 83.9 prior. The Inventories Index came in at 51.9 in April from 42 in March.
A muted month for the US manufacturing sector is expected with continued downside risks from higher food and energy costs, declining real earnings, and deteriorating consumer confidence. The April UofM Consumer Confidence survey fell to 59.5, the lowest reading since 1980.
The indices for Chicago PMI shipments, deliveries and new orders all remain above the contractionary threshold, which may yield a surprising upturn in the April index. Any significant improvement in the index, however, may be brief as economic roadblocks continue to impede the US manufacturing sector.
Related data:
• May Richmond FED Index: -3 from 0 in March
• May Philly FED Index: -15.6 from -24.9 in March
• May Empire State Index: -3.2 from 0 in March
• April ISM Manufacturing Index: 48.6 from 48.6 in March