Chicago Purchasing Managers' Index Rises

Chicago, IL, August 31, 2007--The National Association of Purchasing Management-Chicago said its business barometer rose to 53.8, from 53.4 in July. Readings greater than 50 signal growth.

The figures suggest businesses so far are resilient to this month's tumult in credit markets, which have spurred lenders to fire workers and shut down units. Manufacturing, spurred by record exports, has helped sustain economic growth this year as the housing recession deepened and consumer spending slowed.

Economists had expected the index to decline to 53.

The Chicago group surveys companies with U.S. and worldwide operations. Any group member, even those not located in the Midwest, can respond to the survey. Some economists watch the Chicago index for an early reading on the outlook for overall U.S. manufacturing, which makes up about 12% of the economy.