Chicago PMI Moves Higher

The Chicago PMI’s better than anticipated reading of 60.0 in December from 56.1 a month prior continues to indicate improving business conditions throughout the Chicago area–and a potentially positive forward looking indicator toward December’s ISM. All of the indicator’s components, excluding inventories, have moved above the break-even point of 50. The most noteworthy jump was in the employment index, which rose to 51.2 from 41.9 a month prior. This is the first time the Chicago PMI’s employment index has demonstrated growth since November 2007-a potential positive for payrolls.