Chicago PMI Highest Level Since April: Indicates Margin Pressure

The Chicago PMI released today came in at 62.5 (vs 60.6 prior and 61.0 consensus) which is the highest level since April.

PMI Components (via zerohedge):

• Employment: 56.3 vs. Prev. 54.6
• New Orders: 67.2 vs. Prev. 65.0, highest since May 2007
• Prices Paid: 70.7 vs. Prev. 68.9, highest since April 2010
• Production: 71.3 vs. Prev. 69.8, highest since April 2005

This is a mostly positive and better than expected report except for input prices that continue to rise. This indicates margin compression as it is obvious from CPI data that these higher prices are not being passed on to the end consumer.

More on the PMI from Econoday.