The Institute for Supply Management - Chicago announced the PMI (Purchasing Manager's Index) surprisingly rose to 56.1 from 54.2 in October. Bloomberg News has predicted a fall in survey which I guess, explains the surprise.
Why is this important?
Joseph Lazzaro writes:
Economists monitor the Chicago PMI because it's generally viewed as a representative indicator of sentiment in the nation's industrial, manufacturing core. The Chicago PMI also provides a preview of national production surveys (manufacturing and services) and factory order data released later in the month.
A pretty good explanation of why this is important, however, is the spike a surprise? The national ISM report is good. Industry Week published a recent report from The Manufacturers Alliance that talks about manufacturing outpacing the overall economy. It might be time to stop the hand wringing, pick our collective heads up and see the light on the horizon.
What we can't do, obviously, is expect everything to be sunshine and daisies. If we don't push down the accelerator on innovation ANY recovery will be a short lived recovery.