The Chicago Purchasing Managers’ Business Barometer rose to a still contractionary 48.2 in March from 44.5 in February, the National Association of Purchasing Management-Chicago said yesterday.
Economists polled by IFR Markets predicted a 46.0 reading for the indicator.
The prices paid index grew to 83.9 from 79.4. The employment index increased to 44.6 from 33.5, and the new orders index climbed to 53.9 from 48.8.
As the nation's fourth largest city faces a growing structural budget deficit, it is also expecting to issue more than $3 billion of debt for its airport, water and sewer system, convention center, as well as to fund a settlement with firefighters and for cash-flow purposes.
The extension of the current solar net metering system could lower revenue for the utility.
The finance team is "marketing slices of risk" to raise money to refinance its debt, investors said.
Treasurer John Fleming is pushing back against a proposal in the state Legislature that would make changes to the way the state Bond Commission oversees the issuance of debt by cities, counties and local governments and entities.
Despite higher yields, muni to UST ratios remain rich. Ratios look "progressively richer" moving into the five- to 10-year part on the curve, with the 10-year spot "still far more attractive in taxables versus tax-exempts," J.P. Morgan said.
The growing federal debt level may pressure lawmakers to retract or reduce the tax-exemption for munis to generate revenue, some market participants argue.
