Chicago PMI Up in August

The Chicago Business Barometer, also known as the Chicago Purchasing Manager's Index, is similar to the national ISM Manufacturing indicator but at a regional level and is seen by many as an indicator of the larger US economy. It is a composite diffusion indicator, made up of production, new orders, order backlogs, employment, and supplier deliveries compiled through surveys. Values above 50.0 indicate expanding manufacturing activity.

The latest Chicago Purchasing Manager's Index, or the Chicago Business Barometer, rose to 50.4 in August from 44.4 in July, which was above the Investing.com forecast of 48.1. Values above 50.0 indicate expanding manufacturing activity.

Here is an excerpt from the press release:

Chicago Business Barometer™ Lifted to 50.4 in August The Chicago Business BarometerTM, produced with MNI, rose 6.0 points to 50.4 in August, up from 44.4 in July. Only two of the Business Activity components saw a monthly decline, as Supplier Deliveries saw a sharp fall. [Source]

Let's take a look at the Chicago PMI since its inception.

 

Here's a closer look at the indicator since 2000.

 

Let's compare the Chicago PMI with the more popular national ISM Manufacturing Index. Both indices clearly follow one another with the ISM falling slightly lower on average. Note the ISM Manufacturing indicator is through the previous month.