Chicago PMI Surges In September
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 62.4 in September from 51.2 in August, which is in expansion territory. Values above 50.0 indicate expanding manufacturing activity.
Here is an excerpt from the press release:
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. [Source]
Let's take a look at the Chicago PMI since its inception.
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Here's a closer look at the indicator since 2000.
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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.
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