Auto manufacturing plant and worker in Midwest. (Photo: Reuters)
The Chicago Business Barometer, the Institute for Supply Management’s gauge of Midwest manufacturing, fell to 49.3 in May from 50.4 the month prior. Wall Street expected a gain to 50.7. Readings above 50 point to expansion, while those below indicate contraction.
“While expectations are that growth in the US economy will bounce back in Q2, the evidence from the MNI Chicago Report shows activity weakening from an already low level,” Chief Economist of MNI Indicators Philip Uglow said. “Firms ran down stocks at the fastest pace for more than 6 years in May, and while a rebuilding over the coming months could support output, the underlying message appears to be that businesses are not confident about the outlook for growth.”
The Chicago Business Barometer is the latest survey in the slew of monthly regional reports looked to by economists and traders ahead of the Institute for Supply Management’s national manufacturing report due out Wednesday.
