- PMI 63.0 vs 60.0 forecast, 65.9 previously
- Employment Index 60.9 vs 57.7 previously
- Market Reaction: as tends to be the case with Chicago PMI, a good amount of the market reaction was seen just before the official release of the data because ISM subscribers receive it (and trade on it!) 3 minutes early. As such, a spiky movement at 9:42am is usually a giveaway. In this case, the stronger data is resulting in weaker bond markets.
The November Chicago Business Barometer softened to 63.0 after October’s sharp
rise to a 31-month high of 65.9. November’s slight correction came amid mild declines
in New Orders, Production and Order Backlogs after double digit gains in the prior
Despite November’s weakening, the Barometer remained well above 60 for the
second month, pushing the three month moving average to the highest level since
Chicago area purchasers continued to report healthy expansion in New Orders and
Order Backlogs, albeit at a slower rate, as well as a lengthening in Supplier Delivery
Employment was up for the second consecutive month, reaching the highest level
since October 2011, and the first time above 60 since February 2012.