Chicago-Area Manufacturing Picks Up.
Under the headline “Midwest Business Barometer Jumps In June,” Reuters (7/1, Saphir) reports that the Chicago Business Barometer hit 61.1 in June, increasing from 56.6 in May and surprising analysts who had been predicting a drop in the barometer. The Institute for Supply Management reported that new orders reached 61.2, up from 53.5 the previous month.
Noting the mixed index findings from the most recent Fed Beige Book reports, the Wall Street Journal (7/1, Lahart, Subscription Publication) quotes Barclays economist Dean Maki, who said that while interpretation of the barometer was complicated, Chicago has shown more consistent strength than other regions.
Kansas City Fed Finds Regional Manufacturing Rebound. The Wichita (KS) Eagle (6/30, Voorhis) reports, “The latest survey by the Kansas City Federal Reserve Bank showed that manufacturing rebounded solidly in June after a brief slowdown last month, and producers remained generally optimistic about the future.” Chad Wilkerson, the bank’s vice president, said, “Raw materials price indexes fell for the second straight month, but more producers plan to raise selling prices in the months ahead.” He added, “Hiring plans remain fairly solid for the second half of the year.” The Kansas City Star (7/1, Rosen) reports, “Overall, the Fed said its indexes that measure manufacturing activity were ‘solidly positive’ in June compared with a year ago.”
From SME Daily Executive Briefing 7.1.2011