The Chicago Purchasing Managers' Business Barometer climbed to 52.3 in April from 46.3 in March, 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 50.0 reading for the index.
"The Barometer was supported by gains in four of its five components including a double digit gain in New Orders that reversed around two-thirds of February's sharp drop," the group said in a release. "Order Backlogs also rose strongly but remained below the 50 breakeven line, a reflection of the recent downturn in orders. Production moved out of contraction and the strong gain in New Orders should help to underpin output over the coming months."
Commenting on the Chicago Report, Philip Uglow, Chief Economist of MNI Indicators said, "The bounce back in activity at the start of Q2 is consistent with a resumption of normal activity following the poor weather and port strikes earlier in the year. In percentage terms, the April jump is similar to last year, although the level of activity is lower overall."
