Chicago PMI tumbles, below views (manufacturing growth slows)

[papau]

http://money.cnn.com/2004/06/30/news/economy/chicago_pmi/index.htm

Chicago PMI tumbles, below views

Manufacturing reading comes in at 56.4 in June, well below the 68 hit in May and estimates of 64.
June 30, 2004: 10:41 AM EDT



NEW YORK (CNN/Money) - The manufacturing sector in the Chicago area, a key production region, showed growth well below Wall Street's estimates in June. <snip>

The Chicago PMI is often seen as a barometer for the broader manufacturing sector in the United States, one that is shrinking, but still carries importance, especially in an election year.

The ISM index covering the whole country is scheduled to be released Thursday at 10 a.m. ET. It's seen coming in at 61.5, down from 62.8, according to the Briefing.com consensus.

The new orders component from Chicago area manufacturers posted a sharp decline to a seasonally adjusted 56.8 from 74.4 in May, and the production measure also fell to 53.9 in June from 71.1 the previous month.

Despite those declines, the prices paid index continued to rise to 84.5 from 80 in May, a signal about inflation that could lead the Federal Reserve to raise interest rates Wednesday for the first time in four years.

http://www.napm-chicago.org/current.pdf
The employment component fell to 53.6 in June from 54.8 in May.



Category Jun May Apr Mar Feb
Chicago PMI 56.4 68.0 63.9 57.6 63.6
New Orders 56.8 74.4 65.1 60.4 67.5
Production 53.9 71.1 64.8 59.1 73.0
Employment 53.6 54.8 50.9 49.2 54.8
Prices Paid 84.5 80.0 76.1 75.7 66.9

http://cbs.marketwatch.com/news/story.asp?guid=%7B228C78CF-3A66-458B-8F36-A3ED88BBCE2B%7D&siteid=google&dist=google

BOND REPORT

Treasurys gain; Fed factor priced in
Market supported by lower-than-forecast Chicago PMI

By Kate Gibson, CBS MarketWatch.com

CHICAGO (CBS.MW) - Treasurys headed higher after a regional manufacturing report showed less-than-anticipated expansion, and did nothing to discomfort a market ahead of the Federal Reserve's 2:15 p.m. Eastern policy statement and expected 25-basis-point interest-rate increase.<snip>

[aquart]

1. But the economy's doing so well!

[swag]

2. whoops

just in time for some rate increases.

again, happy stagflation.

[PROGRESSIVE1]

3. "Got Stagflation ?"

[cthrumatrix]

4. they forgot to "manage this number"...this and revised down GDP earlier

[Algomas]

5. Booming economy???

In my business, distributors across the country are crying the blues. It's the worst summer any of us can remember. I have a friend in the motorcycle bizz and he reports the same. Dealerships that last year were selling 20 bikes a month are selling 4 now.

Do you think the government might be lying to us??

[leftchick]

6. These Manufacturing people are mostly repukes too...

At least here in NC. My husband sells capital equipment to manufacturers in this state. I am sure most know about the textile industry disappearing here. The truth is things are much worse across the board in manfacturing ANYTHING. His business sucks but to my amazement the majority of these business and shop owners large and small still support that idiot*. Go figure... :puke: