A measure of business conditions in the Chicago region came in at 51.9 in July, after registering 36.6 in June. Economists surveyed by Econoday had expected a reading of 42.8 for the Chicago PMI. Any reading below 50 indicates worsening conditions.
The Chicago PMI index is made up of production, new orders, order backlogs, employment, and supplier deliveries compiled through surveys.
A higher than expected reading should be taken as positive/bullish for the U.S. dollar, while a lower than expected reading should be taken as negative/bearish for the U.S. dollar.
The Chicago PMI is not a major indicator that we use for timing market swings because it’s not very useful for traders and most investors.
CNBC’s Rick Santelli breaks down the latest Chicago PMI data.