Chicago PMI Falls To 46.9, Missing Analyst Expectations

Key Insights

• Chicago PMI decreased from 55.8 in November to 46.9 in December. 
• SP500 remains stuck below the 4800 level as traders are not ready for big moves in the last trading session of the year. 
• U.S. dollar is moving lower after the release of the disappointing report. 

On December, 29, the Institute for Supply Management released Chicago PMI report. The report indicated that Chicago PMI declined from 55.8 in November to 46.9 in December, compared to analyst consensus of 51. Numbers below 50 show contraction.

Chicago PMI is back below the key 50 level after a brief move towards 55.8. It should be noted that Chicago PMI spent 11 months out of 12 below 50. Analysts were more optimistic, but it looks that the previous reading was an aberration, and the general trend remains intact.

U.S. Dollar Index pulled back towards the 101.20 level after the release of the report. The weaker-than-expected data is somewhat bearish for the U.S. dollar. There are no other reports to digest so traders will stay focused on Chicago PMI in the last trading session of the year.

Gold remained stuck near the $2060 level. Weaker dollar is bullish for gold but Treasury yields are moving higher, so gold markets do not have sufficient catalysts to test new highs ahead of the new year.

SP500 settled below the 4800 level as traders reacted to Chicago PMI report. It remains to be seen whether bulls are ready to push SP500 above the 4800 level as many traders enjoy their vacations and will get back to their desks at the start of 2024.

For a look at all of today’s economic events, check out our economic calendar.