What is it?
The Chicago Business Barometer is released by the NAPM-Chicago on the last business day of the month. NAPM-Chicago is an affiliate of the national organization, the Institute for Supply Management. The ISM is responsible for the ISM Manufacturing Index and the ISM Services Index.
The Chicago report is the result of a survey of Chicago area businesses - both manufacturing and non-manufacturing. Many consider it to be a leading indicator for the ISM Manufacturing Index, issued shortly thereafter. However, the survey goes to both manufacturing and non-manufacturing businesses, placing doubt on whether it can truly lead a purely manufacturing index.
The Fed closely monitors the report, as it has a long history and has, according to many, proven a relatively reliable indicator of business activity and inflation. It is an economic backdrop report, and frequently moves markets. The Chicago PMI also contains sub-indexes that give clues into pricing and inflation pressures.
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