Highlights
The rate of descent is definitely slowing in the Chicago area where the purchasers' index jumped nearly 10 points to 40.1, still sub-50 to indicate contraction but nevertheless a big gain. There's improvement across the report led importantly by new orders which jumped more than 11 points to 42.1. Backlog orders also showed less month-to-month deterioration, at 36.9 vs. March's 21.3. The Chicago report draws its respondents from across industries whether manufacturing or non-manufacturing. Order readings from the ISM had been mixed to improving in recent months and today's results point to solid improvement for both ISM reports.

Other readings out of Chicago include a faster rate of inventory liquidation, showing that businesses are still resetting to a lower level of demand, and also a drop in prices paid which may be a surprise given this month's firmness in many commodity prices including oil. Stocks are extending opening gains in reaction to the report.

Market Consensus before announcement
The Chicago PMI Business Barometer index for March fell nearly 3 points to 31.4 - a very contractionary reading below the breakeven level of 50. However, some components did show steady or even easing rates of contraction including employment which gained nearly 3 points but was at level of 28.1, reflecting negative growth. The input price index fell to 34.1 from February's 37.8, maintaining concern over deflation.

2009 Release Schedule

Released On: 1/30 2/27 3/31 4/30 5/29 6/30 7/31 8/31 9/30 10/30 11/30 12/30 Release For: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec