The Association of Managers in Chicago reported that the PMI index deteriorated significantly in August, exceeding forecasts of experts, and reaching the lowest level since may.
According to the index of purchasing managers Chicago fell to 51.5 points against 55.8 points in July. It was expected that the figure will be 54.0 points. Recall that this index is closely watched because it is published shortly before the release of the PMI from ISM and can give an idea about how will the indicator of business activity at the national level.
The company said that four of the five components of the index recorded a decrease in August. Increased only the sub-index of employment, compared with a 16-month high. Despite the fact that most companies reported that they are not going to hire staff, this percentage fell in August to 58% from 63% a year earlier. In addition, the proportion of those planning to hire both temporary and permanent employees rose to 21% compared with 15% in August 2015. The rate of new orders and production fell to its lowest level since may. Meanwhile, the sub-index for backlogs of orders fell in August by 14.5 points, to 41.7 points (at least with APR). Stocks index declined slightly, dropping below 50 points. We will remind, in July it peaked in October 2015. Inflationary pressures eased slightly, which was noted for the fourth month in a row. In the end, the purchase inflation dropped to the lowest level since March.