Chicago PMI Falls, Misses Expectations

In the first sub-50 reading in 2-1/2 years, the Chicago PMI fell more than 4 points in June to miss Econoday's low-end expectations. Deterioration in June was wide with only employment showing improvement. But further gains for employment in this sample are in question given contraction in new orders and a second straight month of contraction for backlog orders. In contrast to the general weakness, input prices are rising with some members of the sample blaming tariffs for the pressure.