Chicago PMI shows business sentiment and prices keep rising
Surveys of business owners continue to show rising sentiment as the U.S. moves toward summer.
Driving the news: The Chicago purchasing managers index (PMI) came in at 66.3 in March, the highest it's been since July 2018.
What it means: The survey asks business owners whether things are better, worse or the same for their firm, with a reading of 50 meaning that respondents overall were neutral.
- A reading over 60 shows conditions improving strongly.
The big picture: The Chicago PMI, a bellwether for the Midwest U.S. economy's growth, is one of multiple sentiment surveys to reach a multiyear high this month, following the Philadelphia Fed manufacturing index's jump to a level that was almost double its previous record high.
- March manufacturing surveys from the Institute for Supply Management and IHS-Markit also reached levels at or near 60.
Don't sleep: All of these surveys also have shown prices reaching yearslong highs as well.
- The Chicago prices paid index rose for a seventh straight month, touching its highest level since August 2018.