Chicago PMI Beats All Expectations, Soars To 64
The Institute for Supply Management (ISM) for the Chicago region released their Purchasing Manager Index (PMI) earlier today. The Chicago barometer provides an early look at what the direction may be for the larger ISM Manufacturing Index which will be released tomorrow. The Chicago PMI includes both manufacturing and non-manufacturing industries so it only provides a snap-shot on the total economy.
The Chicago PMI business barometer strengthened in February, rising to its highest level in 10 months. February marked the 29th month of economic expansion, with the past 4 months reporting indexes over 60. Employment is the highest since May 1984 along with new orders, which are at the highest level since March 2011. Order backlogs expanded after their dip in January while inventories retreated to slightly below 50. Production is the highest since April 2011. Prices paid accelerated from January to February while production material lead times eased of 10+ year highs. Six of the eight business activity indexes reported increases, signaling a very strong month. (Source: Institute for Supply Management)
In Thursday evening’s Steel Market Update newsletter we will cover the larger ISM Manufacturing Index which is forecast to continue to be above 50.0 which is the level indicating growth within the manufacturing segment of the economy.