The Chicago Purchasing Managers reported that its Index
achieved its highest level since July 1988, expanding for the fifteenth consecutive month.Here's the graph showing business activity in the Chicago PMI since 1985:
BUSINESS ACTIVITY:
- PRODUCTION reached its highest levels since October 2004;
- NEW ORDERS improved to 2005 levels;
- EMPLOYMENT reached its highest level in more than 5 years;
- PRICES PAID accelerated to its highest point since July 2008.
BUYING POLICY:
- Lead times extended for MRO SUPPLIES and CAPITAL EQUIPMENT, while lead times for
PRODUCTION MATERIEL plummeted to near August’s level.
This completes a clean sweep. In December every single regional manufacturing report surprised to the upside, sometimes strongly. The employment component of the Chicago PMI is particularly welcome.
Bonddad here: This is another great report. We've had some really good numbers lately, indicating the the economy should be picking up steam going into the first quarter.
