The MNI-ISM Chicago Business Barometer for June was 49.7, the first time below a neutral reading since January 2017, the report said. The report indicated that the blame lies firmly with trade and tariff policy that disrupts supply chains and makes it difficult to cost production and materials. The survey includes respondents from both the manufacturing and service sectors.
The number isn’t far below the 50-mark and could easily respond to improvements in the outlook if some agreements are reached in the talks between Presidents Trump and Xi.
The downturn was mainly due to falling new orders and reductions in backlogs, and slower production. Vendor lead times expanded and employment remained positive with “hiring new staff and summer interns, replacing retirees”.
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