Global| Mar 31 2015Chicago Purchasing Managers Index Stabilizes
by:Tom Moeller
|in:Economy in Brief
Summary
Chicago purchasing managers reported that their March Business Barometer Index moved up to 46.3 this month following a sharp decline to an unrevised 45.8 in February. The reading roughly equaled expectations for 51.4 in the Action [...]
Chicago purchasing managers reported that their March Business Barometer Index moved up to 46.3 this month following a sharp decline to an unrevised 45.8 in February. The reading roughly equaled expectations for 51.4 in the Action Economics Forecast Survey. Haver Analytics constructs an ISM-Adjusted Index, comparable to the overall ISM index to be released tomorrow. Our figure improved modestly to 50.9 following its sharp February decline. During the last ten years, there has been a 61% correlation between the adjusted Chicago Purchasing Managers index and real GDP growth.
Most of the component series showed modest improvement last month. The inventories index improved the most to the highest level since November. The production series also gained somewhat after its February plunge. Movement in other components was negligible following sharp deterioration last month. Employment ticked up to 50.3 but remained near the lowest level since April 2013. During the last ten years, there has been an 82% correlation between the employment figure and the m/m change factory sector employment.
The index of prices paid retraced most of its February decline but remained at the lowest point since the end of the recession in 2009. Twenty two percent (NSA) of respondents reported paying higher prices and 20 percent reporting paying less.
The MNI Chicago Report is produced by MNI/Deutsche Borse Group in partnership with ISM-Chicago. The survey covers a sample of over 200 purchasing professionals in the Chicago area with a monthly response rate of about 50%. The ISM-Adjusted headline index is calculated by Haver Analytics using these data to construct a figure using the ISM methodology. The figures can be found in Haver's SURVEYS database. The Consensus expectations figure is available in AS1REPNA.
| Chicago Purchasing Managers Index (%, SA) | Mar | Feb | Jan | Mar'14 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| ISM-Adjusted General Business Barometer | 50.9 | 48.3 | 56.2 | 55.3 | 59.4 | 54.3 | 54.8 |
| General Business Barometer | 46.3 | 45.8 | 59.4 | 57.4 | 60.7 | 56.1 | 54.6 |
| Production | 49.3 | 44.8 | 64.1 | 62.7 | 64.5 | 58.3 | 57.6 |
| New Orders | 42.3 | 42.0 | 61.6 | 60.7 | 63.8 | 59.2 | 55.1 |
| Order Backlogs | 41.9 | 41.1 | 51.9 | 51.6 | 54.2 | 48.9 | 48.0 |
| Inventories | 58.0 | 46.7 | 40.1 | 44.8 | 56.0 | 45.7 | 51.4 |
| Employment | 50.3 | 49.8 | 60.1 | 51.6 | 56.0 | 55.6 | 55.3 |
| Supplier Deliveries | 54.8 | 58.3 | 54.9 | 56.5 | 56.5 | 52.5 | 54.9 |
| Prices Paid | 45.7 | 47.8 | 44.2 | 55.1 | 61.0 | 59.9 | 62.2 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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