Chicago PMI hits highest level in nearly four years

(Sharecast News) - Manufacturing activity across the Chicago region unexpectedly grew at its fastest pace in nearly four years in February, according to the Institute for Supply Management (ISM). The Chicago Business Barometer jumped to 57.7 this month, up from 54.0 in January and well ahead of the consensus forecast of 52.8.

This was only the second month of growth - indicated by any reading over 50 - since the end of 2023 and the strongest increase since May 2022.

The production barometer rose to its highest since November 2023, employer growth was its highest since October 2021, new orders grew by their steepest pace since January 2022, while supplier deliveries nudged higher.

Order backlogs and inventories provided some offset, with both falling back into contractionary territory, while the prices paid index ticked higher.