A closely-watched survey of Midwest manufacturing activity clocked in at its highest level since January, but barely crossed the point of expansion. The Chicago Business Barometer, commonly known as the Chicago PMI, on Thursday climbed by 6.0 points in April to 52.3 from 46.3 in March.
Readings above the 50-point threshold indicate expansion, while readings below indicate contraction.
“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,” Chief Economist of MNI Indicators Philip Uglow said. “In percentage terms, the April jump is similar to last year, although the level of activity is lower overall.“
Four of the five sub-catetgories in the index increased, including a double-digit gain in new orders. Order backlogs made gains, but remained below the 50 percent break-even point.
Meanwhile, only the prices-paid subindex declined.
