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, jumped to 63.8 in January from 58.7 in December, 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, rose 5.1 points to 63.8 in January. The index now stands at the highest level since July 2018, boosted by a pick-up in activity at the beginning of 2021.

Among the main five indicators, Production saw the largest monthly gain, followed by New Orders. Employment recorded the biggest decline. [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.