Chicago PMI ticks higher in December

Economic activity in the Chicago area unexpectedly picked up in December, according to data released on Wednesday.

The MNI Chicago business barometer rose to 59.5 from 58.2 in November, beating expectations for a reading of 57.0. A reading above 50.0 indicates expansion, while a reading below signals contraction.

Among the main five indicators, employment saw the largest monthly gain, rising to a one-year high but remaining in contraction territory since July 2019. Order backlogs also gained, while new orders suffered the biggest decline.

Through the fourth quarter as a whole, business sentiment recovered further to 59.6, hitting its best level since the final quarter of 2018.