September 2020 Chicago Purchasing Managers Barometer Surges to 62.4 in September

The Chicago Business Barometer improved from 51.2 to 62.4.

Expectations this month from Econoday were 50.8 to 56.3 (consensus 52.1). A number below 50 indicates contraction.

From ISM Chicago:

The Chicago Business BarometerTM, produced with MNI, jumped to 62.4 in September, the highest level since December 2018, as business activity recovered across the board. Through Q3, business sentiment recovered sharply to 55.2, the strongest reading since Q1 2019. All five main indicators saw monthly gains in September, with Production and New Orders leading the way. On a quarterly basis, Supplier Deliveries was the only category to see a decline. Production recovered sharply in September, rising by 16.0 points to an almost two-year high. Output jumped 29.2 points on a quarterly basis in Q3, while Demand gained 11.0* points in September, shifting the New Orders index up to the highest level since November 2018. In Q3, New Orders saw the greatest uptick, rising by 32.0 points.

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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.

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source and read the full report: Chicago PMI

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