Chicago, IL, October 31, 2005--The National Association of Purchasing Management-Chicago said today its Business Barometer, which is based on a survey of executives in the region, rose to 62.9 during the month from 60.5 in September. Numbers higher than 50 signal growth.
Consumer and corporate demand are driving sales at Chicago- area companies including Motorola Inc., Boeing Co. and BorgWarner Inc. Investors and economists watch the Chicago report for clues about trends in U.S. manufacturing, which may strengthen and help drive the economy as inventories are rebuilt.
``Manufacturing is in solid shape outside of the areas directly affected by the hurricanes,'' said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York, before the report. ``Inventories have been worked down to extremely low levels and orders growth has stayed relatively robust. That combination means that manufacturing activity has been picking up.''
Personal spending rose 0.5 percent in September after a 0.5 percent decrease, the Commerce Department reported today. Incomes increased 1.7 percent after a 0.9 percent decrease, according to the report.
The Chicago index was expected to fall to 57.4 this month, according to the median of 50 forecasts in a Bloomberg News survey. Estimates ranged from 55 to 60.5. The index showed a decline in activity in August for the first time since April 2003.
