US Chicago PMI goes into reverse in April
Manufacturing activity in the area around Chicago, which is heavily geared towards the fortunes of jetmaker Boeing, slowed sharply in April.
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Market News International's factory sector Purchasing Managers' Index dropped by 6.1 points to 52.6, missing economists' forecasts for a reading of 59.0 and hitting its lowest level since January 2017.
Significantly, a gauge of new orders dropped below its average level for the last 12 months and the pace of output growth weakened to a level not seen since May 2016.
Companies' backlogs of orders were the only bright spot, MNI said, growing again after having shrink during the previous month.
Stockpiles continued to be run down, the survey compiler said, but less quickly than in March.
Factory gate prices were especially weak, dropping by the most since December 2008.
"This was a disappointing start to the second quarter, with more firms cutting back on both production and employment against a backdrop of softer domestic demand and the global slowdown," said Shaily Mittal, Senior Economist at MNI.
She added: "Most Barometer components have dived below their respective 12-month averages, pointing towards greater business uncertainty among firms."