Index of Midwest economic activity dropped nearly 6 points this month
Economic activity in the Midwest contracted at the fastest pace in more than six years in December, according to the Chicago Business Barometer, also known as the Chicago PMI, MarketWatch reported. The index fell to 42.9 from 48.7 in November. Economists had expected it to rise 1.3 points to 50 this month. The index has spent much of the year below the 50 mark that separates expansion from contraction. Order backlogs were the biggest drag in December, dropping 17.2 points to 29.4. That’s the lowest since May 2009 and marked the 11th straight month in contraction. The last time such a sharp decline was registered was 1951. New orders also sank to the lowest level since May 2009. That’s bad news for activity down the road. Still, 55.1 percent of survey respondents said they expect stronger demand in 2016 than in 2015.