Chicago PMI Beats Expectations, Suggests Strong Industrial Sector
The Chicago PMI for June increased to 52.9 from 52.7 in May. The report beat expectations of 52.3. This number may be seen as positive for the manufacturing sector, and for general economic health in the United States.
The Chicago PMI is based on data compiled from purchasing and supply executives in the Chicago-area. The Index measures new orders, the backlog of orders, new export orders, imports, production, supplier deliveries, inventories, customers' inventories, employment and prices. It establishes a consensus of economic health for Chicago-area manufacturing.
The number is sent out by the ISM-Chicago to paid subscribers early, allowing subscribers to take advantage ahead of the broader financial market.
However, recently, social networks--particularly Twitter--have largely killed that advantage. Traders can generally find the number being posted online ahead of the official release.
According to the report, the June Chicago Business Barometer stabilized just above May's 33-month low. The short-term trend of the Chicago Business Barometer fell for the third month. The three-month moving average of each business activity index, except employment, fell in June.
Production rebounded, but new orders and order backlogs are at their lowest level since September 2009.
Traders who believe that the Chicago PMI is a leading indicator for the US economy, might want to consider the following trades:
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: twitter
Posted in: Long Ideas, News, Short Ideas, Commodities, Global, Econ #s, Economics, Markets, Movers, Trading Ideas, Best of Benzinga