Chicago Area Manufacturing on Verge of Growth

Chicago, IL, Aug. 31, 2009–Manufacturing activity improved for the third straight month in the Chicago region in August.

The Chicago purchasing managers index rose to 50% in August from 43.4 in July, according to a survey of corporate purchasing managers released Monday.

This is just on the threshold of growth and the highest reading since last summer. Readings over 50% indicate overall business expansion.

The Chicago PMI is considered a leading indicator to the national Institute for Supply Management manufacturers’ survey to be released on Tuesday. The median forecast for ISM manufacturing composite is for an increase to 50.5 from a July reading of 48.9.

The ISM index has not been above 50 since January 2008 at the beginning of the recession.