The market was expecting a value of 54.0 versus the reported value of 56.8. A number below 50 indicates contraction.
The Chicago Purchasing Managers reported the Chicago Business Barometer rose for a second month, up 1.2 points to 56.8, its highest level since last March. Improvement in the Business Barometer was concurrent with gains in New Orders, Order Backlogs, and Supplier Deliveries while Production and Employment expanded at a slower pace.
- NEW ORDERS: 3rd consecutive monthly gain and 11 month high;
- ORDER BACKLOGS, SUPPLIER DELIVERIES and INVENTORIES gravitated towards neutral;
- PRICES PAID rose slightly;
- EMPLOYMENT: best since June 2012.
- PRODUCTION MATERIAL adjusted lower; CAPITAL EQUIPMENT shortest since August 2010.
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