Chicago PMI crushed expectations.
Friday’s report showed the barometer regained all of the ground lost in July. Friday’s reading also marked the highest level for the report since May.
According to Bloomberg’s Alex Tanzi, six of the report’s components rose in August, including prices paid, new orders and inventory. The employment component of the report, however, fell in August.
Inventories grew at the fastest pace in eight years, with inventories of finished goods jumping to above 60, the highest since October 2006.
Following the report, Philip Uglow, Chief Economist at MNI Indicators said, “We had speculated that July’s downturn would prove temporary rather than signal the start of a downward trend. The sharp bounceback in August, with growth in output at the highest for nearly ten years, suggests that growth in the US economy will continue apace in Q3.”
This chart from ISM Chicago shows the recent volatility in the report.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.