Chicago Purchasing Managers, Prelude to a Quiet ISM?

Chicago Purchasing managers is frequently used as a preliminary vote for the national report from the Institute of Supply Management.  This morning we saw the Chicago Purchasing Managers come in at 39.9.  That is higher than the 34.9 reading in May, and it is very close to 40.0 that Bloomberg listed as its consensus estimate.  So far, this is having limited impact on stocks.

As long as this reading remains under 50.0, we are still in the area considered economic contractions.  The national reading for the ISM Manufacturing Index will be released at 10:00 AM EST tomorrow, and Bloomberg lists the consensus expected there as being 45.0.  The May reading came in at 42.8.  This number should not create much at all in any upside surprise expectations for tomorrow’s data.

Jon C. Ogg
June 30, 2009