Chicago Manufacturing Index Of 56.5 Is At Its Lowest Since November 2009

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Headline: August Chicago PMI came in at 56.5 beating estimates but below the July figure. The number was the lowest since November 2009.Markets will be watching this number to help gauge whether the Fed will embark on a third round of easing in September.

Expectations: Consensus is for a drop in the Chicago PMI’s business barometer index to 54.

Analysis: Chicago PMI eased to 58.8 in July from 61.1 in June. New orders had seen strong growth last month while backlog orders had moved up from contraction territory.

The survey measures manufacturing and non-manufacturing activity in the Chicago region. Investors look to this indicator as a reflection of the distribution of manufacturing and non-manufacturing across the U.S.