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A gauge of business conditions in the Chicago region that’s seen as a bellwether for the U.S. economy surged in March to a nearly two-and-a-half-year high, offering more evidence that growth is picking up across the country.
The Chicago PMI climbed to 66.3 last month from a revised 59.5) in the prior month. Readings above 50 indicate an expanding economy, and anything above 50% is considered exceptional.
The last time the index was that high was in July 2018.
Other regional and national surveys of business conditions in manufacturing are also pointing to an acceleration in growth, though many companies say they are facing higher prices for supplies and that it’s constraining growth.
The prices companies paid for materials rose for the seventh month in a row and hit the highest level in 30 months. Inflation has become a worry again to investors amid a raft of evidence pointing to rising prices.
On the brighter side, a gauge that measures employment turned positive for the first time in almost two years.
All signs point to increased hiring in the U.S. as the government lifts restrictions and the economy more fully reopens.
