Highlights
MNI Chicago's business barometer index lurched into negative ground this month, dropping 3.3 points in September to 49.7 which is the first sub-50 reading of the recovery. The Chicago index never really toyed with the 50 level, hitting a previous recovery low of 52.7 in May but otherwise it consistently signaled solid growth in the Chicago economy. New orders also remained consistently solid, until this month when they fell a very steep 7.4 points to 47.4, also the lowest level of the recovery.

Other readings include a second month of steep contraction for backlog orders where the outlook, based on this month's new orders reading, points to further contraction ahead. Chicago businesses are drawing on backlogs to keep up production which still shows solid monthly growth. Employment also continues to grow.

This report covers both the manufacturing and non-manufacturing sectors and underscores the economic weakness in the news especially following yesterday's downward revision to GDP and big decline in durable goods orders. The Dow is moving to opening lows.

Market Consensus before announcement
The Chicago PMI remained in positive territory although with minor slippage as the composite index posted at 53.0 in August, compared to 53.7 the prior month. Importantly, the prospects for the Chicago-area economy picked up in August as the new orders index advanced 1.9 points to 54.8 to show the strongest monthly growth of the last 4 months.

2012 Release Schedule

Released On: 1/31 2/29 3/30 4/30 5/31 6/29 7/31 8/31 9/28 10/31 11/30 12/28 Release For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec