Manufacturing activity rebounded sharply in the Chicago area in April with the purchasing managers index beating forecast and coming in at 63.0. The reading had been 55.9 in March and is now the highest since October’s outlier, which at the time was the strongest since April 2011. Five of the sub-indices reported expansion including employment as both new orders and production increased.
Analysts had projected a softer gain to just 57.0 ahead of the report, but the faster increase leaves the three-month trend just below 60 and according to the MNI is “consistent with continued recovery of the US economy.” The data provider also reported a recovery in order backlogs, which is a sign that buyers have had enough of waiting out the wild winter weather and are stepping up activity in anticipation of rebounding demand.
Chicago PMI leaps