Chicago PMI Shoots Through the Roof in May

This is actually the Chicago Business Barometer, and it was the highest reading since March 2012. It also rapidly reverses April’s low that had not been seen for more than three years. The group said, “All Business Activity measures surged in May, reversing weakness seen in most categories in March and April.”

Inventories were said to be at the lowest level in about three and a half years. All components in backlogs, supplier deliveries and employment were shown to have soared out of contraction. Production did as well.

Investors often use the Midwest reports as the first of many regional reports to try to get a barometer for national manufacturing and services conditions. The reports do not always coincide regionally for the national level, but traders and investors frequently will use any numbers and data they can to draw certain conclusions.

The full ISM-Chicago Business Survey and the MNI Chicago Report is here.