Chicago PMI Soars to 65.9 in October from 55.7 in September

The Chicago Purchasing Managers' Business Barometer gained to 65.9 in October, its highest level since March 2011, from 55.7 in September, the National Association of Purchasing Management-Chicago said Thursday.

The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.

Economists polled by Thomson Reuters predicted a 55.0 reading for the index.

The production index climbed to 71.1 from 58.0, the new orders index increased to 74.3 from 58.9, the order backlogs rose to 61.0 from 46.7 in the prior survey and inventories grew to 48.0 from 46.0. The employment index jumped to 57.7 from 53.2 and the supplier deliveries index was at 52.7, off from 53.7 last month. The prices paid index slid to 56.7 from 57.1.

The increase in the Business Barometer was the biggest month-over-month jump since July 1983, when it surged 12.7 points. The fourth straight gain was just the third in the past decade.

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