Econoday Economic Report: Chicago PMI December 29, 2011

2011 Economic Calendar

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Chicago PMI

Released On 12/29/2011 9:45:00 AM For Dec, 2011

	Prior	Consensus	Consensus Range	Actual
Business Barometer Index - Level	62.6	60.7	58.0 to 65.0	62.5

Highlights
Business activity in the Chicago area is very brisk led by strength in orders and supported by depth in backlogs. The new orders index for December is at 68.0, an unusually strong reading that's well above 50 to indicate a robust pace of month-to-month growth. Note that growth in new orders during November was even stronger, at 70.2. This increase new orders is moving into backlog orders which at 57.9 is unusually strong for this index and is up from November's already strong 55.1.

Readings on production and employment are also very strong in today's report with inventories showing a modest slowing in what is already a modest rate of accumulation. This is a real bonus as lean inventories will help give a boost to future orders.

The composite index for December is little changed at a very strong 62.5. Today's report, whose sample includes businesses from all areas of the Chicago economy, points strongly to solid results for the national manufacturing and non-manufacturing reports from the ISM. Stocks are moving to opening highs following this report.

Definition
The Institute For Supply Management - Chicago compiles a survey and a composite diffusion index of business conditions in the Chicago area. The survey is now conducted by Market News International since the October of 2011. Manufacturing and non-manufacturing firms both are surveyed. Hence, it is not directly comparable to pure manufacturing surveys. Readings above 50 percent indicate an expanding business sector. Why Investors Care

The ISM-Chicago survey (traditionally and informally called the Chicago PMI) registers manufacturing and non- manufacturing activity in the Chicago region. Investors care about this indicator because the Chicago region somewhat mirrors the nation in its distribution of manufacturing and non-manufacturing activity. Many like to compare the Chicago-PMI with following business day's ISM manufacturing index but they do not always move in tandem since the national ISM is only for manufacturing.
Data Source: Haver Analytics

2011 Release Schedule

Released On: 1/31 2/28 3/31 4/29 5/31 6/30 7/29 8/31 9/30 10/31 11/30 12/29

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