April 2021 Chicago Purchasing Managers Barometer At Highest Level Since December 1983

The Chicago Business Barometer improved from 66.3 to 72.1

Expectations this month from Econoday were 63.0 to 68.1 (consensus 64.0). A number below 50 indicates contraction.

From ISM Chicago:

The Chicago Business BarometerTM, produced with MNI, rose to 72.1 in April, the highest level since December 1983. The index gained 5.7 points, boosted by an influx of new business. Among the main five indicators, Order Backlogs posted the largest increase, while Supplier Deliveries saw the biggest decline. Demand improved markedly in April with New Orders rising by 9.9 points to a near-7-year high. Production ticked up 0.9 points to the highest level since January 2018. Anecdotal evidence suggested an anticipated increase in business activity, partly because firms are overbuying due to raw material shortages. Order Backlogs soared, up 16.2 points in April, hitting the highest level since December 1973. Firms are experiencing difficulties in getting certain components and raw materials.

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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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