Definition of 'Chicago PMI'
Kingsbury International (on behalf of the Institute for Supply Management (Chicago)) conduct a survey of both manufacturing and non-manufacturing firms in the Chicago area. A composite diffusion index is compiled from this survey. A value over 50 percent is indicative of an expanding business sector.
The overall index that is produced by the survey is called the Business Barometer which investors usually refer to as the Chicago PMI. The figure shows acceleration with a value of 50% showing zero acceleration. A figure above 50% indicates expansion and a figure below contraction. The further that the figure is away from 50% the faster the acceleration.
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