The Chicago Business Barometer improved and remains firmly in positive territory.
Expections this month from Nasdaq / Econoday were 57.3 to 64.8 (consensus 62.0) with the actual at 65.5. A number below 50 indicates contraction. Jamie Satchi, economist at MNI Indicators stated,
The MNI Chicago Business Barometer started the third quarter in bullish form, with business activity supported by robust demand and output. Both, like the headline index, registered 6-month highs and the majority of firms expect demand to increase further over Q3. Input prices continue to be a thorn in the side of businesses, however, with the Prices Paid indicator at the highest in a decade and continuing to signal pipeline inflation,” he added.
The MNI Chicago Business Barometer rose to a six-month high of 65.5 in June, up 1.4 points from 64.1 in June. Businesses’ operations rose at a swifter pace in July, with activity up for the fourth straight month. All but one of the Barometer components rose on the month, with only Supplier Deliveries losing ground, leaving the Barometer up 10.1% on the year. Like the headline index, both New Orders and Production recorded six-month highs in July, traditionally a busy month for firms coinciding with the summer holiday season. Both indicators sit comfortably above the neutral-50 mark, up 8.0% and 10.6% on the year respectively, and continue to signal robust demand.
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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