Chicago PMI Falls More Than Expected

Chicago, IL, May 31, 2011 -- The Chicago PMI fell sharply to a reading of 56.6% in May from April's 67.6%.

Production, new orders and order backlogs all dropped sharply. Economists had expected a reading of 60.0%.

"Whether by plan or by misfortune, the proportion of firms reporting buildup in inventories increased in May, showing the broadest increase seen since September 2006," the survey said.