The Chicago Business Barometer significantly improved and remains firmly in positive territory.
Expections this month from Bloomberg / Econoday were 56.6 to 59.4 (consensus 58.1) with the actual at 62.7. A number below 50 indicates contraction. Jamie Satchi, economist at MNI Indicators stated,
It had been a somewhat sluggish start to the year, perhaps unsurprising after the stellar end to 2017, but the MNI Chicago Business Barometer found a higher gear in May. Although broad based, the rise was largely thanks to a rebound in demand and back-to-back growth in output.
The MNI Chicago Business Barometer rose 5.1 points to 62.7 in May, up from 57.6 in April, hitting the highest level since January. Business activity gained traction in May, with growth in firms’ operations up for only the second time this year. All five Barometer components rose on the month, helping take the Barometer’s year-over-year growth back into the black. While broad based, the Barometer’s gain was largely driven by an acceleration in both output levels and orders. Having ended a run of three consecutive falls last month, the Production indicator notched another gain on its belt, rising to a three-month high. New Orders also increased in May, the first sign of order book growth this year, rising to a four-month high. The two indicators account for the lion’s share of the headline index, two thirds exactly, and stand 3.7% and 2.1% above their respective May 2017 levels.
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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