Chicago PMI Explodes Higher, Beats By 5 Standard Deviations

Everything is awesome again in Chicago apparently…

Against expectations of a modest drop from 58.9 to 58.7, MNI’s Chicago Business Barometer exploded higher to 65.2 in September…

This is well above the highest analyst expectation and 5 standard deviations above expectations…

Under the hood, it’s also awesome…

• Prices paid rose at a faster pace, signaling expansion
• New orders rose at a faster pace, signaling expansion
• Employment rose and the direction reversed, signaling expansion
• Inventories rose and the direction reversed, signaling expansion
• Supplier deliveries rose at a faster pace, signaling expansion
• Production rose at a faster pace, signaling expansion
• Order backlogs rose at a faster pace, signaling expansion
• Business activity has been positive for 12 months over the past year.
• Number of components rising vs last month: 7