Chicago PMI Portrays a Sluggish U.S. Manufacturing Sector

According to a recent MarketWatch article, the Chicago manufacturing purchasing manager’s index (PMI) fell 7.5 points to 48.7 in November from 56.2 in OctoberOther findings show a drastic 15.3-point decrease in new orders that pulled down the headline index below the 50 mark that separates expansion and contraction. storage cabinet

The combination of a strong dollar, weak oil prices, and dull global demand contributed to the area’s sixth contraction reading of the year, reports the article. 

However, due to the volatile nature of the economy this year, experts have mixed reviews on the meaning of the Chicago PMI reading, says the article. 

“As we have been discussing, the weakness in the export-oriented manufacturing sector needs to be viewed in conjunction with what has been fairly solid growth in the other 88% of the economy,” notes Jim O’Sullivan, chief economist at High Frequency Economics, in the article. “In aggregate, the two ISM surveys have signaled a still-solid trend in overall growth — solid enough to keep the unemployment rate trending down.”

As manufacturers content with an unsteady market, companies can continue to rely on Lista’s manufacturing storage solutions to drive productivity and efficiency during such challenging times.

Learn more about Lista manufacturing solutions or contact us for a quote! 

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