Your Economy (No Politics)

[Bullwinkle]

Chicago-area business index rises in March
2006-03-31 17:28 GMT


CHICAGO (AFX) -- A measure of business in and around Chicago rose in March to its highest level this year.

The National Association of Purchasing Management-Chicago said its business barometer, known in financial markets as the Chicago purchasing managers index, or PMI, rose to 60.4% in March. The gauge slipped to 54.9% in February.

Readings below 50% indicate a majority of businesses reported declining conditions.

In March, production rose to 65.1% from 56.0%.

New orders rose to 62.2% from 54.9%. Employment growth picked up to 55.6% from 54.9% in February.

Prices paid inched lower to 71.1% from 71.6%.

The Chicago PMI is used by traders to provide clues for the Institute for Supply Management's national gauge of manufacturing activity. That report will be released Monday morning.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, called the Chicago PMI a "very strong report."

"The odds therefore now favor a decent gain in national ISM index on Monday; we look for about 59 -- an 18-month high -- up from 56.7," Shepherdson said.

In separate reports, the Commerce Department said consumer spending inched higher in February.

The government said factory orders inched higher in February.

Researchers at the University of Michigan reported that consumer sentiment rose unexpectedly in late March.

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