What is the Chicago Purchasing Managers Index?
This index measures market movements from the manufacturing and non-manufacturing sectors in the Chicago area. It analyzes production, new orders, order backlog, employment, and supplier deliveries. Data is collected from purchasing and supply management professionals about current business conditions for their organizations. A reading above 50 shows expansion, below 50 shows contraction, and at 50 indicates no change.
Why is the Chicago Purchasing Managers Index valuable?
Although the Chicago Purchasing Managers Index is a regional report it can highlight national trends. Because of this it is widely considered a leading indicator of the U.S. economy. The index provides valuable information on current business conditions and as well as current market movements. Additionally, it is a comparison tool as it is released monthly and adjusted for seasonality.
What should you do?
If you’re looking for an indicator that highlights national economic activity and regional trends output, following the Chicago Purchasing Managers Index is a great place to start. Majestic’s CORE Report follows the Chicago Purchasing Managers Index; along with other indicators every week to see where the market stands.