Chicago PMI rises more than expected in March

The Chicago Purchasing Managers’ index rose six points to 53.6 in March, led by sharp rebounds in production and employment.

The data, released by the Institute for Supply Management, came in better than the 50 reading economists had expected.

The increase in the barometer was led by a big jump in production, which followed an even steeper decline in the previous month.

The biggest surprise came from the employment component, however, which rose above the 50 mark in March to the highest level since April 2015 following a period of relative weakness compared with other activity indicators.

Philip Uglow, chief economist of MNI Indicators, said: “The most significant result from the March survey is the pick-up in the Employment component which has remained weak for much of the past year. Looking through some of the recent volatility, the data are consistent with steady, not spectacular, economic growth in the US.”