The National Association of Purchasing Management - Chicago compiles a survey and a composite diffusion index of business conditions in the Chicago area. Manufacturing and non-manufacturing firms are both surveyed, but until recently, market players have believed that the survey primarily covers the manufacturing sector. Readings above 50 percent indicate an expanding business sector. The NAPM - Chicago is considered a leading indicator of the ISM manufacturing index. Why Investors Care
| Released on 3/30/07 For Mar 2007 | ||||||||||||
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Highlights
The Chicago purchasers' index jumped dramatically in March, to 61.7 vs. 47.9 in February. New orders soared to 72.2 from 48.7 in February as did backlogs, to 54.0 from 44.3.
But reaction was limited to the report which sometimes suffers from comparatively small sample sizes. Still, the readings will raise expectations for improved readings in next week's ISM reports.
Other details of the report were less dramatic, with employment at 45.0 vs. 50.6 and prices paid at 59.1 vs. 63.2.
The NAPM-Chicago purchasing managers' index fell to 47.9 in February from 48.8 in January, remaining below the break even level of 50. The Chicago index has been one of the softer regional indexes and is likely to remain that way for March. The February report showed new orders and backlogs slightly in negative territory (below 50) while inventories rose - all of which point to weak future activity.
NAPM-Chicago Consensus Forecast for March 07: 49.0
Range: 47.0 to 51.3
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The NAPM-Chicago Survey registers manufacturing and non-manufacturing activity in the Chicago region. Investors care about this indicator because the Chicago region mirrors the nation in its distribution of manufacturing activity. Consequently, the NAPM-Chicago survey often moves together with the ISM index, but is reported one day in advance. |
| 2007 Release Schedule | ||||||||||||||||||||||||||
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