Last Update: 27-Nov-13 10:17 ET
- Manufacturing activity in the Chicago region remained strong. The Chicago PMI fell to 63.0 in November from 65.9 in October. That was the first time since November/December 2011 that the index stayed above 60 for two consecutive months. The Briefing.com consensus expected the Chicago PMI to fall to 58.0.
- With the index running so strong over the last few months – increasing from a 51.6 in June to the current highs – a normal cyclical pullback was expected. That never materialized.
- New orders softened slightly, from 74 in October to 68.8 in November, but that is hardly a drop that would be considered consistent with weakness in demand. Production fell to 64.3 in November from 71.1 in October.
- The Employment Index spiked to its highest point since October 2011, increasing from 57.7 in October to 60.9 in November.
- The Chicago PMI has little overall economic value, and is only watched by the financial markets because it is usually released one day in advance of the similar national ISM manufacturing survey. A significant move in this regional survey will therefore sometimes be seen as having predictive value for the ISM index.