Chicago PMI rises in March but stays below 50
The Chicago Purchasing Managers Index remained in contraction for the second consecutive month in March, data released on Tuesday showed.
The index rose to 46.3 in March from a sharp decline to 45.8 in February, its lowest level in over five years, but remained below the 50 threshold marking contraction, as the US economy grew at a sluggish pace.
According to MNI Indicators, of the five sub-components which make up the index, the production gauge posted the sharpest increase, rising 4.5 points to 49.3, while those for new orders (to 42.3 from 42) and order backlogs rose slightly but failed to move above 50.
“There was some expectation that the Barometer would bounce back in March following the sharp fall in February,” said MNI Indicators’ chief economist Philip Uglow.
“Instead we are faced with a second consecutive sub-50 reading and the weakest quarterly outturn for more than five years.”
Uglow added the data pointed to a “significant” loss of momentum in the US economy during the first quarter.
"This morning’s report suggests the weak February reading for the Chicago PMI was not due solely to harsh winter weather and the West Coast port strike and that the underlying trend for Midwest manufacturing growth may in fact be quite muted," chipped in Barclays' Jesse Hurwitz.