US Chicago PMI moves back into expansion territory in July

A widely-followed gauge of manufacturing sector activity in the Chicago area bounced back sharply in July.

Market News International's factory sector Chicago Purchasing Managers' Index leaped from a reading of 36.6 points for June to 51.9 in July (consensus: 43.9).

Higher readings for subindices on new orders and output spearheaded the improvement in the headline index.

The former leaped by 23.8 points to reach the level last seen in August 2019 while production rose 49.5%, putting that index back in expansion territory, MNI said.

In parallel, another sub-index for suppliers' deliveries eased, likely reflecting fewer bottlenecks.

Just over half of respondents told MNI that they had put in place contingency plans for a possible second wave of the novel coronavirus.