Highlights of the January Chicago Purchasing Manger's index
- Highest since Jan 2015
- Prior was 42.9
- Double digit surges in new orders, order backlogs and production.
- New orders at highest level in a year
- Prices paid in contraction for sixth month
The number is released to subscribers 3 minutes early and it quickly did the rounds, giving USD/JPY another lift.
The strong number bodes well for US manufacturing weathering the effects of the strong dollar. The strength might be a mirage after very weak readings in Nov and Dec. Orders may have been depressed and the snap back is a one-off mirage. More evidence comes from the inventories component which fell. That argues that companies aren't expecting the orders to continue.
