Chicago PMI Surges To Higher Than Expected Level

Expansion is March's score for the often volatile Chicago PMI which surged 6 full points to a higher-than-expected 53.6. This is once again, for the 4th month in a row, outside of Econoday's consensus range! Contraction was the score in February at 47.6.

Details for March show strength for both new orders and backlog orders which are solid pluses for future activity. Production this month was also strong as was employment which is rising once again and at its best rate since April last year. Inventories are still in contraction and input prices are still falling.

Most anecdotal indications on the month of March have been positive including this report which tracks both the manufacturing and non-manufacturing sectors of the Chicago economy.

Recent History Of This Indicator
The Chicago PMI is expected to rebound to 50.3 following February's 8-point plunge to a sub-50 contractionary level of 47.6. The only good news in the February report was a bounce back over 50 for new orders. This report tracks the Chicago economy in general and is subject to extreme volatility. In fact, Chicago has fallen outside of Econoday's consensus range for the last three months in a row.