Chicago PMI Soars Back Into Expansion In July

While ‘hard’ data continues to disappoint, ‘soft’ survey data is still chock full of hope as MNI’s Chicago Business Barometer surged to 51.9 from 36.6, smashing expectations of 44.0.

Source: Bloomberg

Under the hood, everything is awesome with 6 subcomponents rising:

• Prices paid rose at a faster pace; signaling expansion

• New orders rose and the direction reversed; signaling expansion

• Employment fell at a slower pace; signaling contraction

• Inventories fell at a slower pace; signaling contraction

• Supplier deliveries rose at a slower pace; signaling expansion

• Production rose and the direction reversed; signaling expansion

• Order backlogs fell at a slower pace; signaling contraction

This is the highest reading for Chicago PMI since May… what lockdown?