Chicago PMI smashes forecasts to hit four-month high

(Sharecast News) - Business activity across the greater Chicago metropolitan area increased at its fastest pace in four months in September, according to ISM-Chicago, rebounding after its first contraction of the year in August.

The ISM-Chicago purchasing managers' index, which tracks business conditions across Illinois, Indiana and Michigan, surged to 58.8 last month, well ahead of the 47.1 print recorded in August.

This was comfortably above the consensus forecast of 51.2 and the highest rate of expansion - signalled by any figure about the neutral 50-point level - since May.

The increase was driven by higher levels of production, new orders, supplier deliveries and order backlogs, partially offset by declines in employment across the region.

Meanwhile, the prices paid sub-index fell 3.7 points over the month, falling to levels last seen in July, though responses continued to indicate upward price pressures, according to the report.

Special questions in the September survey included one on raw materials and inputs businesses are currently finding most difficult to source, with semiconductors/electronic components mentioned by 27% of respondents and metals/speciality alloys by 23%.