by Calculated Risk on 5/28/2010 09:51:00 AM

From the Institute for Supply Management – Chicago:

The Chicago Purchasing Managers reported the CHICAGO BUSINESS BAROMETER eased again, tempering the pace of its expansion while marking its eighth month of growth. All Business Activity indexes except EMPLOYMENT signaled expansion. ... EMPLOYMENT slipped below neutral for the first time in 2010.

The new orders index declined from April (65.2 to 62.7), and inventories increased sharply. Note: any number above 50 shows expansion.

This is similar to other regional reports: continued expansion, but at a slower pace. New orders are softer, and the inventory adjustment is over.

Especially concerning is the sharp decline in the employment index (from 57.2 to 49.2). The national ISM manufacturing index will be released next Tuesday.