PMI Increases to Six-Month High in July

The Chicago Purchasing Manager’s Index (PMI) rose 1.4 points to 65.5 in July, the highest reading in six months. Any reading above 50 indicates expansion and improving conditions.

The PMI is an indicator of overall economic health for the manufacturing and service industries. The index is based on a monthly survey of executives at more than 400 companies, focusing on five major areas: new orders, production, employment, supplier deliveries and inventory levels.

The production and new orders indexes also hit six-month highs, while the prices paid index hit the highest levels in 10 years.