Chicago Purchasing Managers' Index Falls Below 50
img src="/sites/default/files/images/articles/downgraph.gif" width=72 align=right alt="">Manufacturing activity in the heavily industrial Midwest declined in September, its first contraction in eight months, a survey of purchasing managers showed Monday.
The National Association of Purchasing Management-Chicago said that it's factory index slipped to 48.1 in September – a fall of nearly 7 points from August's reading of 54.9.
The manufacturing is a major customer of the trucking industry and declines in activity can hurt business for transportation firms.
An economist with National City Corp. in Cleveland told Bloomberg that while manufacturing growth was solid through the first part of 2002, its been taking a stumble and it is still unclear how steep that stumble will be.
Each of the NAPM-Chicago's contributing indices fell, with the exception of its employment index, which rose two points to 46.6.
Of particular interest to trucking, NAPM-Chicago's production index fell 4.3 points to 52.8 and its new orders index dropped 6.6 points to 49.2.
In a bit of other news, wages, salaries and other personal income in the United State all rose in August, the Commerce Department reported.
Incomes rose 0.4% during the month after no change in July. At the same time, consumer spending rose 0.3% during the month – its third straight monthly increase.
The increase in spending was lower than many analysts had expected, news services reported (Click here for related coverage.).
Consumer spending accounts for two-thirds of economic activity in the United States and is a major contributor to demand for trucking services.
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