US: Chicago PMI posts first decline in six months - Nomura

Analysts at Nomura note that the Chicago PMI decreased by 6.8pp in July to 58.9, slightly below consensus (Nomura & Consensus: 60.0) and the first decrease in six months.

Key Quotes

“Businesses overall appear upbeat considering the headline index sitting just below the six-month average of 59.6. Last month's reading was the highest since May 2014, so some moderation is not surprising. The new orders and production indices both declined, by 11.6pp and 6.9pp, respectively, but remain within expansionary territory, indicating continued growth albeit at a slower pace than in recent months. Employment index fell slightly by 4.0pp. Although still elevated, this reading suggests slower growth in hiring. Over the past few months, manufacturing activity has improved steadily, but the pace of that improvement appears to be moderating. Note that the July ISM manufacturing survey will be released today.”