Chicago PMI Growth Robust, At Top Of Consensus Range

Unusually robust and sustained growth is once again the signal from the Chicago PMI which, at 65.4 in December and little changed from November's 66.4, came in at the very top of Econoday's consensus range.

Growth in new orders and employment did ease in December but not backlog orders or production which posted solid gains. Indications of easing in capacity stress are special positives as supplier deliveries improved and prices paid, despite continuing reports of tariff-related pressures on metal and lumber costs, fell for a fifth straight month and by the largest monthly margin in nearly four years.

The fourth-quarter average for the headline index came in at 63.4 for a rate of growth that is at the very top of the regional and private diffusion reports. Today's results for this report, which samples both manufacturers and non-manufacturers, may well raise expectations for increasing strength in the coming ISM reports for December.