The government shutdown certainly didn't hold back the Chicago economy with the PMI surging more than 10 points for the strongest monthly gain in over 30 years. The rate of monthly growth, at 65.9, is the strongest in more than 2-1/2 years. And the strength is centered where it should be, in new orders which surged more than 15 points to 74.3 for the highest rate in 9 years. Backlog orders are suddenly at a 2 1/2-year high, up more than 14 points to 61.0.
Production has been very active this month in Chicago, at 71.1 which is another 2-1/2 year high. Inventories are steady and deliveries are only slowing slightly, both pointing to available capacity in the supply chain, capacity that may soon have to be tapped given the strength in orders. Employment, at 57.7 for a sizable 4 point gain, is already beginning to move up.
This report, which covers all areas of the Chicago economy, points to upward surprises for the coming ISM reports on manufacturing and non-manufacturing both of which have already been running very much on the strong side. The Dow isn't showing much reaction to today's surprisingly strong report.
Source: Bloomberg
Production has been very active this month in Chicago, at 71.1 which is another 2-1/2 year high. Inventories are steady and deliveries are only slowing slightly, both pointing to available capacity in the supply chain, capacity that may soon have to be tapped given the strength in orders. Employment, at 57.7 for a sizable 4 point gain, is already beginning to move up.
This report, which covers all areas of the Chicago economy, points to upward surprises for the coming ISM reports on manufacturing and non-manufacturing both of which have already been running very much on the strong side. The Dow isn't showing much reaction to today's surprisingly strong report.
Source: Bloomberg
