Details of this morning's Chicago PMI release per Briefing.com:
- At 56.1, the index is at its highest point since August 2008 and showed an expansion in manufacturing for the second consecutive month.
- The production rating, while still expanding at a strong rate, slowed as the index dropped from 63.9 to 57.6.
- Beyond production, employment is still under heavy contraction but the rate slowed slightly as the index rose from 38.3 to 41.9.
- Firms will also have to settle for lower profits as prices paid for supplies entered an expansion phase as the index rose from 48.6 to 52.6. Due to extreme slack in the labor market, firms will have a tough time passing the higher prices to the consumer.