Chicago PMI: Another Fall In April

The Chicago Business Barometer, also known as the Chicago Purchasing Manager's Index, is similar to the national ISM Manufacturing indicator but at a regional level and is seen by many as an indicator of the larger US economy. It is a composite diffusion indicator, made up of production, new orders, order backlogs, employment, and supplier deliveries compiled through surveys. Values above 50.0 indicate expanding manufacturing activity.

The latest Chicago Purchasing Manager's Index, or the Chicago Business Barometer, fell to 35.4 in April from 47.8 in March, which is in contraction territory. Values above 50.0 indicate expanding manufacturing activity.

Here is an excerpt from the press release:

The Chicago Business BarometerTM, produced with MNI, fell 12.4 points in April to its lowest level since March 2009 as business confidence dipped sharply amid the current spread of COVID-19. [Source]

Let's take a look at the Chicago PMI since its inception.

Here's a closer look at the indicator since 2000.

Let's compare the Chicago PMI with the more popular national ISM Manufacturing Index. Both indices clearly follow one another with the ISM falling slightly lower on average. Note the ISM Manufacturing indicator is through the previous month.