EmailStory Stocks®
Archive
Last Update: 29-Dec-11 10:24 ET
Manufacturing Conditions Remain Strong in the Chicago Region
The Chicago Purchasing Managers Index from Kingsbury International, Ltd., decreased slightly from 62.6 in November to 62.5 in December. The Briefing.com consensus expected the Chicago PMI to fall to 60.1.
Even though manufacturing activity did not accelerate in December, the Chicago region continues to enjoy the strongest manufacturing conditions compared to every other region surveyed by the Federal Reserve. This may be due to a heavy bias toward motor vehicle and parts manufacturers.
Production growth slowed in December, though not by much, as the related index fell from 67.3 in November to 66.2 in December. That is still well above the 50.0 expansion/contraction threshold.
New orders slipped as the index fell from 70.2 in November to 68.0 in December.
The slight drop-off in new orders should not have an effect on production growth next month. Unfilled orders increased from 55.1 in November to 57.9 in December. At that level, backlogs are large enough to keep production stable in the face of further volatility in new orders.
Even though manufacturing activity did not accelerate in December, the Chicago region continues to enjoy the strongest manufacturing conditions compared to every other region surveyed by the Federal Reserve. This may be due to a heavy bias toward motor vehicle and parts manufacturers.
Production growth slowed in December, though not by much, as the related index fell from 67.3 in November to 66.2 in December. That is still well above the 50.0 expansion/contraction threshold.
New orders slipped as the index fell from 70.2 in November to 68.0 in December.
The slight drop-off in new orders should not have an effect on production growth next month. Unfilled orders increased from 55.1 in November to 57.9 in December. At that level, backlogs are large enough to keep production stable in the face of further volatility in new orders.
