Chicago Economic Activity Report Solid

Business activity in the Chicago economy remains very solid, at a composite score of 55.8 and showing only little change from 56.8 in June. Growth in new orders, however, is down this month as is growth in backlog orders, which are two negatives for future activity. A positive for July is a rise in employment and also a solid build in inventories, both hinting at business confidence in the outlook. Price pressures remain soft with input costs down for a third straight month. Though orders are soft, this report points to respectable strength for Chicago and, by extension, for the economy as a whole.

Recent History Of This Indicator:
The Chicago PMI is expected to come in at 54.0 in July, down from June's spike to 56.8. New orders surged in June as did backlog orders, both pointing to July gains for production and perhaps employment as well. This report, which is often volatile month to month, tracks both the manufacturing and non-manufacturing sectors of the Chicago economy.