Chicago PMI Shows Smaller Than Expected Rebound in June
In May, many US states began to lift restrictions and reopen their economiesso they could get a head-start on that V-shaped recovery everyone was talking about. Now however, some of those US states are only left with skyrocketing coronavirus cases, with a v-shaped recovery nowhere to be found.
According to the Chicago Purchasing Manager’s Index (PMI), which measures the economic wellbeing of Chicago’s manufacturing sector, only a slight rebound from the previous month’s 38 year low was noted in June. Economists polled by Econday predicted the PMI to increase from 32.3 in May to at least 44.5 in June. In reality however, there was only a slight rebound to 36.6.
Some indicators of the Chicago PMI saw improvements, such as New Orders and Production, the largest rebounds for the month. In addition to the reported indices, the Chicago PMI also surveyed respondents on how they plan to proceed with employment levels. According to the manufactures that responded, over half are anticipating a hiring freeze, while another 18% are anticipating a workforce expansion.
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