Chicago PMI Rebounds

The Chicago PMI, jumping 5.1 points, is quickly back in the 60s column at 62.7 in May. New orders, which had been slowing, are re-accelerating with backlog orders likewise rebounding. Production picked up in the month as did employment which, however, continues to be held back by lack of available labor. And there are plenty of signs of capacity stress in this sample with delivery delays the longest of the year and with the rise in input costs holding at a 7-year high. All the small-sample indications for May, including this one, have been strong and point to a solid month of growth for the economy.