The Chicago PMI (Purchasing Managers' Index) is a monthly economic indicator that measures business conditions in the Chicago region's manufacturing and non-manufacturing sectors. A reading above 50 indicates expansion, while below 50 signals contraction, and it is often used as a leading indicator for the national ISM Manufacturing PMI. Released on the last business day of each month, the Chicago PMI can cause significant short-term volatility in equity and bond markets when results deviate from expectations.
Example
“The Chicago PMI unexpectedly fell to 44.7, sending Treasury yields lower as traders priced in a weaker manufacturing outlook.”