Chicago PMI Drops More Than Expected
A proxy for automakers is the Chicago Purchasing Manager's Index. The following data was released this morning:
@The Chicago PMI fell to 54.1% from 62.1% in September. Economists were expecting the index to fall to 58.7%.
@The employment index rose to 57% from 50.8%.
@The prices paid index fell to 62.5% from 69.8%.
@The new orders index fell to 54.1% from 67.3%.
Readings over 50% indicate growth in the region. With Ford recently announcing significant production cuts well into 2007 and all three American auto makers cutting production because of high inventories, it should be expected the Chicago PMI will continue to erode over coming months.
@The Chicago PMI fell to 54.1% from 62.1% in September. Economists were expecting the index to fall to 58.7%.
@The employment index rose to 57% from 50.8%.
@The prices paid index fell to 62.5% from 69.8%.
@The new orders index fell to 54.1% from 67.3%.
Readings over 50% indicate growth in the region. With Ford recently announcing significant production cuts well into 2007 and all three American auto makers cutting production because of high inventories, it should be expected the Chicago PMI will continue to erode over coming months.
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