Chicago PMI spikes more than expected

Business activity in Chicago accelerated by more than expected in November after a slowdown in October, according to the Institute of Supply Management and MNI Indicators.

The latest reading for the Chicago purchasing manager’s index (PMI) came in at 57.6 — the highest reading since January 2015.

Economists had forecast that the reading rose to 52.0, compared to the prior month’s reading of 50.06, which was a five-month low.

A reading above 50 indicates that activity is still in expansionary territory.

“The November reading for the Business Barometer marked the sixth month of expansionary business activity in the US. Strength in orders, a recovery in oil prices and the stronger dollar have all impacted businesses with varying degrees,” said Shaily Mittal, senior economist at MNI Indicators.

Mittal added that the survey respondents remain optimistic about 2017.

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