As was noted on Friday, the U.S.’s first-quarter GDP growth clocked in at a disappointing annualized 2.2 percent, and there’s now more bad news to follow this up: An important economic indicator, the Chicago Purchasing Managers’ Index, has fallen substantially, to its lowest point since November of 2009. Reuters reports:
Business activity in the U.S. Midwest slowed more than expected in April, falling to its lowest since November 2009 as new orders slipped, a report showed on Monday.
The Institute for Supply Management-Chicago’s business barometer fell to 56.2, below economists’ expectations of 61.0. The reading was 62.2 in March.
A reading above 50 indicates expansion in the regional economy. The employment component of the index rose to 58.7 from 56.3. But new orders dropped to 57.4 from 63.3 in March, dragging down the overall barometer of growth.