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 4/30/07 For Apr 2007 | ||||||||||||
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Highlights
The Chicago purchasing managers' index fell sharply in April to 52.9 from March's spike at 61.7. Growth in new orders fell back to 56.5 vs. an unusually high 72.2 in March. Backlog orders contracted to 48.4 from 54.0. Inventories showed a sharp 5.6 point drawdown to 43.2. Employment was a positive at 50.5, up from 45.0 in March, as was production at a very strong 62.2 vs. 64.9. Prices paid, reflecting high energy prices and possibly higher prices for some raw materials, rose to 64.9 from 59.1.
The Chicago report has been volatile in recent months making judgments hard to call. Today's data are not likely to affect expectations for this week's national purchaser reports from the ISM. There was no significant reaction in the financial markets.
The NAPM-Chicago purchasing managers' index surged in March to 61.7 from 47.9 in February. However, this survey sometimes has a small sample size and is notoriously volatile.
NAPM-Chicago Consensus Forecast for April 07: 54.0
Range: 50.4 to 57.0
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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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