Chicago Feb PMI Expected To Increase
By Allen Sykora
futuresource.com
Chicago, Feb. 27 (OsterDowJones) - Economists are looking for another
rise in the Chicago Purchasing Managers Index that is due out Thursday,
although expectations are that it will continue to lag behind the national
index.
Various news organizations are reporting that Wall Street economists are
looking for a pick-up to around 47.0 to 47.4 in the PMI, after a reading of
45.1 in January. The report is due out from NAPM-Chicago at 1000 ET Thursday.
"I think we just have a general sense that the manufacturing sector is
doing better," said Dana Johnson, managing director and head of research for
Banc One Capital Markets in the Chicago area. "The Chicago PMI has been
lagging behind the national one somewhat. But with the more convincing upturn
in the national one, the Chicago one is likely to follow."
The national PMI, issued by the Institute of Supply Management, has risen
from 44.7 in November to 48.1 in December to 49.9 in January. The Chicago
index has risen from 41.1 in November to 41.4 in December to 45.1 in January.
"We have strongly diversified manufacturing companies in the Chicago area,
so we expect it to reflect the national trend," said Johnson.
Gus Faucher, senior economist with Economy.com, looks for the Chicago PMI
to be little changed to "up a little bit" from the previous month. While the
data may show that the manufacturing sector is not yet expanding, "it's
setting the stage for recovery," said Faucher. |
