Highland Park, IL (PRWEB) April 30, 2010
The Chicago Business Barometer escalated to the highest level since April 2005, marking its seventh month of expansion. The Chicago Business Barometer, reported in the CHICAGO Report, is a composite index based on a survey of purchasing professionals.
All seven Business Activity indexes signaled expansion in April, the second consecutive month of broadly based economic recovery.
In spite of seven months of growth in Production, Order Backlogs reached a level near its ten-year high. Predictably, increases in Employment lagged but still marked a fourth month of growth in April.
Strong demand - perhaps joined by systemic constraints - slowed Supplier Deliveries, pushing the index to the highest level since June 2004. An important indicator of increased demand, the Prices Paid index escalated above 70, higher than the average decade-long level of 63.
Finally, the levels of Business Activity drove Buying Policy lead times longer for both sensitive MRO Supplies and Capital Equipment while, inexplicably, Production Materiel lead times decreased: both for April and for the three-month moving average.
63.8 Chicago Business Barometer
71.4 Prices Paid
65.2 New Orders
64.9 Supplier Deliveries
61.4 Order Backlogs
28.4 days Production Materiel
9.1 days MRO Supplies
99.6 days Capital Equipment
About The Chicago Report
The composite Chicago Business Barometer (often referred to as the “Chicago Purchasing Managers’ Index” or “Chicago PMI”) and associated indexes are reported monthly in The Chicago Report.
For more than 30 years, this data has proved a reliable leading indicator of US economic activity. The Report includes the Business Barometer as well as a series of Business Activity and Buying Policy indexes. The Report is developed by Kingsbury International in partnership with the ISM-Chicago.
The Chicago Report characterizes expanding or contracting US economic activity through a survey panel of purchasing/supply-chain professionals, primarily drawn from membership of the Institute for Supply Management-Chicago (ISM-Chicago). The report commonly is misunderstood as a local survey of manufacturing entities, but includes service as well as manufacturing activities for the global activities of the responding companies. Since Chicago is a common site of Fortune 500 headquarters, the Chicago survey panel represents and reports on economic activity well beyond manufacturing in the Chicagoland area.
The indexes in The Chicago Report represent the breadth of activity compared to the prior month (technically “diffusion indexes”). As such, this report measures the pervasiveness of changes in economic activity, but does not reflect the magnitude of either advances or declines. The composite Chicago Business Barometer provides an overall gauge of business activity.
The Chicago Report includes seven Business Activity indexes, reported as raw data and seasonally adjusted values (more/faster; same; less/slower) to illuminate trends in economic activity:
- New Orders
- Order Backlogs
- Supplier Deliveries
- Prices Paid
Since the early 1970’s, the Buying Policy indexes provide a monthly measure of lead times for three major categories of products: average days required to source
- Production Materiel
- MRO Supplies
- Capital Equipment
The Chicago Business Barometer is computed from five weighted raw indexes (see series and weights below) and, like the component indexes, seasonally adjusted to support month-to-month comparisons to reveal longer term trends more clearly:
New Orders 0.35
Order Backlogs 0.15
Supplier Deliveries 0.15
This market-moving data is released at 8:42am by subscription, 3 minutes prior to public release at 8:45am Central time. The survey results typically are released on the last working day of each month (see http://www.kingbiz.com/release/ for the specific release dates).
For more information about The Chicago Report, the Chicago Business Barometer or the ISM-Chicago business survey, visit http://www.kingbiz.com.
Kingsbury International, Ltd.
245 Ridge Road
Highland Park, IL 60035
Phone: 847 831-4770
Fax: 847 831-2846