Chicago PMI Shows Positive Growth

September has been a good month for the Chicago economy based on the PMI which rose 3.7 points to 54.2. Growth in new orders held steady at a moderate rate though backlog orders fell into contraction. Production, which had been soft, is very strong in today's report, at nearly a 60 level. Not showing increasing strength, however, is employment which fell back from a 16-month high. Shipping snags tied to China lengthened supply times which are a positive for the headline composite. Cost pressures remain light and, in a special question, nearly 80 percent of the sample say the run-up to the presidential election is having no significant impact on business. This report tracks both the non-manufacturing and manufacturing sectors of the Chicago economy.

Recent History Of This Indicator:
The Chicago PMI slumped to 51.5 in August after solid back-to-back scores of 55.8 and 56.8 in July and June. New orders slowed through the summer which points to ongoing weakness in overall activity. Forecasters are calling for only a 1/2 point bounce back to 52.0 for September. This report tracks both the manufacturing and non-manufacturing sectors of the Chicago economy.