Chicago PMI unexpectedly improves in April

Economic activity in the Chicago area unexpectedly improved in April, according to data released on Friday.

The Chicago Purchasing Managers’ index rose to 58.3 from 57.7 in March, hitting its highest level since January 2015 and beating expectations for a decline to 56.5.

Demand continued to pick up in April, rising for the third consecutive month. New orders were up 5.5 points to a near three-year high. Off the back of two consecutive rises, the production indicator fell 2.2 points from March to 59.5.

Meanwhile, order backlogs contracted for the fifth consecutive month, although at a much faster rate than in recent months. Suppliers took longer to deliver key inputs, with the respective indicator 1.6 points higher at 56.0 in April.

Shaily Mittal, senior economist at MNI Indicators, said: “The April Chicago report showcased another impressive month, with firms reporting solid growth. Rising demand and firm production led to a pick-up in hiring by firms.

“Although the employment indicator has been bumpy, in and out of contraction, if the current month’s rise is sustained, it could provide a boost to the labour market.”