Economy
Chicago PMI dips 0.1 points in June
Written by Kristen DiLandro
June 30, 2025
The Chicago Business Barometer reports that the Purchasing Managers Index (PMI) slipped 0.1 points to 40.4 points in June.
Factors attributed to the slide include reduced supplier deliveries, decreases in production, employment drops, and softening back orders, according to the latest report by Market News International (MNI) and the Institute for Supply Management (ISM).
The reductions were offset by new orders, according to the report. However, new orders remain below the year-to-date average
June’s PMI trails March’s 47.6 point, year-to-date high, by 7.2 points. This makes it the 19th consecutive month the PMI is below 50 points.
Supplier deliveries fell 6.8 points. Production slipped 2.7 points. The third consecutive month for production drops, June, brought the index down to its lowest level since January. While employment retreated 3.9 points, the figure is the second highest so far for 2025.
Respondents mostly saw backlogs soften. Just 4% reported larger backlogs in June, making it the smallest percentage on record and the lowest since 1980, the report stated. The monthly backlog fell 1.5 points.
Prices paid climbed to the highest level since May 2022, up 8.3 points. Seventy percent of respondents said they paid more in June, a 57% increase from May.
June saw a 4.1-point rebound in new orders. The report explains that a lower proportion of respondents announced fewer new orders compared to May. Inventories moderated 8.0 points.
The survey asked respondents to name by what percent they saw their businesses growing in the second half of 2025. Of those polled, 45% answered that they estimate their businesses will grow 0-5%. The second largest group of respondents, 28%, project zero growth for the rest of 2025.
Thirty-eight percent of the survey respondents stated that they expect to reduce their current inventory levels in the second half of the year. Meanwhile, 34% said they expect to maintain their current inventory levels. Twenty-eight percent of respondents were evenly split about whether they expect to increase their inventory (14%) or just do not know what to expect (14%). No respondents expect to request suppliers to increase their levels.
Kristen DiLandro
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