By Jill Mislinski
The Chicago Business Barometer, also known as the Chicago Purchasing Managers' 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 report for Chicago PMI came in at 63.9, down from 66.2 last month. Investing.com forecast 63.0.
Here is an excerpt from the press release:
"Despite November's fall, the MNI Chicago Business Barometer remains on track to deliver the first full year of expansion in three years. Firms seem to have navigated through the worst of the bad weather conditions in recent months, though supplier deliveries rising to a thirteen-year high and persistent, high input costs suggests the effects are yet to fully dissipate away," said Jamie Satchi, Economist at MNI Indicators. [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.