Thursday, June 30, 2011

Chicago Manufacturing Beats Expectations

The WSJ Blog details:

U.S. manufacturing activity was stronger than expected in June, with rising orders and easing price pressures, according to the monthly survey of Chicago-area purchasing managers.

The closely-watched Chicago Business Barometer broke three months of slowing growth in June, rising to a seasonally-adjusted 61.1 from 56.6 in May, well above the 53.5 consensus among analysts surveyed by Dow Jones Newswires.
Chicago PMI: Index > 50 = Expansion


Another important detail from this months report was the decline in inventories, which infers that manufacturers will need to produce more to meet demand (they met a portion of current demand simply out of inventories), a good sign for future growth.

Source: ISM

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