The Chicago Business Barometer, also known as the Chicago Purchasing Manager’s Index, is similar to the national ISM Manufacturing indicator but at a regional level and is seen by many as an indicator of the larger US economy. It is a composite diffusion indicator, made up of production, new orders, order backlogs, employment, and supplier deliveries compiled through surveys. Values above 50.0 indicate expanding manufacturing activity.
The latest Chicago Purchasing Manager’s Index, or the Chicago Business Barometer, fell in September to 60.4 from 63.6 in August, which was above the Investing.com forecast 62.3.
Here is an excerpt from the press release:
“The MNI Chicago Business Barometer slipped to a five-month low this month, courtesy of a softening across both Production and New Orders. That said, the survey continues to indicate robust business conditions, reflected by the best calendar quarter outturn this year in Q3” said Jamie Satchi, Economist at MNI Indicators.” [Source]
Let’s take a look at the Chicago PMI since its inception.
Here’s a closer look at the indicator since 2000.
Let’s compare the Chicago PMI with the more popular national ISM Manufacturing Index. Both indices clearly follow one another with the ISM falling slightly lower on average. Note the ISM Manufacturing indicator is through the previous month.
