Chicago PMI shows marginal dip, continues to signal manufacturing contraction

Published 30/06/2025, 14:48
Chicago PMI shows marginal dip, continues to signal manufacturing contraction

The latest report on the Chicago Purchasing Managers’ Index (PMI) has been released, indicating the ongoing health of the manufacturing sector in the Chicago region. The actual number for the PMI came in at 40.4, a figure that continues to signal contraction in the region’s manufacturing sector.

This actual figure of 40.4 is slightly below the forecasted number of 42.7. The forecast had suggested a potential slight uptick in the manufacturing sector, but the actual number indicates that the contraction has continued, albeit at a marginally slower pace.

When compared to the previous month’s PMI, the actual figure shows a negligible decrease. The previous PMI had been 40.5, suggesting that the manufacturing sector’s contraction is remaining relatively steady, rather than accelerating or decelerating significantly.

The Chicago PMI is a crucial economic indicator, offering insights into the health of the manufacturing sector in the Chicago region. A reading above 50 indicates expansion of the sector, while a reading below 50 signals contraction. The PMI can be a useful tool in forecasting the ISM manufacturing PMI, which offers a broader view of the national manufacturing sector.

The PMI’s actual figure of 40.4 is therefore significant. It suggests that the manufacturing sector in the Chicago region continues to contract, albeit at a slightly slower pace than forecasted. This could have implications for the USD, as a lower than expected reading is typically interpreted as negative or bearish for the dollar.

The PMI’s marginal decrease from the previous month’s figure also suggests a relative steadiness in the sector’s contraction. This steadiness, coupled with the lower than expected actual figure, may influence future forecasts and economic strategies. As always, the PMI will be closely watched by economists and investors alike for any signs of change in the health of the region’s manufacturing sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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