Chicago PMI Slips in January

The Chicago PMI slipped 1.2 points to 59.6 in January from a revised 60.8 in December. The index, formally known as the Chicago Business Barometer, fell for the third consecutive month but was still firmly above the 50.0 mark that indicates expansion.

Employment weakened in January to a reading of 49.2, slipping into contraction for the first time in nine months and the second consecutive monthly decline.

Prices paid rose to its highest level since November 2012, with a reading of 64.9.

“There have been concerns that putting the brakes on monetary easing could damage business. Most respondents, though, thought that the Federal Reserve’s decision to begin tapering their bond purchases in December would not have a significant impact on their business”, said Philip Uglow, Chief Economist at MNI Indicators.

{amchart id=”111″ Chicago Business Barometer Index}