The market was expecting a value of 50.0 to 50.5 versus the reported value of 55.6. A number below 50 indicates contraction.
The Chicago Purchasing Managers reported the Chicago Business Barometer accelerated 5.6 to 55.6, its highest level since April 2012. The Business Barometer advanced amid broad gains in Production, New Orders, and Employment. Five of seven business barometer indexes gained, but inconsistent with the expansionary theme were declines in Supplier Deliveries and Prices Paid.
• PRODUCTION, NEW ORDERS: surged to 10 month highs;
• EMPLOYMENT: best since June 2012;
• ORDER BACKLOGS: sixth consecutive month in contraction;
• SUPPLIER DELIVERIES: shortest lead times since July 2009.
• PRODUCTION MATERIAL: longest lead time since March 2012.
The Chicago ISM is important as it is a window into the national ISM reports which will be issued shortly. When you compare the graph below of the ISM Manufacturing Index against the Chicago PMI (graph above) - there is a general correlation in trends, but not necessarily correlation in values.
source and read the full report: Chicago PMI