Chicago PMI Still Strong, Prices Paid Falls

- The Chicago Purchasing Manager Index for July rose to 57.9 versus estimates of 56.0 and a reading of 56.5 in June.

BOTTOM LINE: Manufacturing in the Chicago area this month unexpectedly accelerated as businesses expanded production to meet demand, Bloomberg said. The prices paid component of the index fell to 86.8 from 89 the prior month. The new orders component of the index rose to 60 from 57.2 the prior month. The employment gauge rose to 50.5 from 50.4 in June. I continue to expect manufacturing to decelerate modestly from current levels over the intermediate-term.