[ForexNews]

The Chicago Purchasing Managers Index (PMI) increased to 56.1 in November from 54.2 in October, above consensus (53.3) expectations. The forward-looking new orders index improved to 62.8 from 61.4, while production slipped to 57.6 in November from 63.9 in October but remained well in expansion territory. The employment index increased to 41.9 from 38.3, remaining notably below the levels of other regional manufacturing surveys such as the Philadelphia Fed and Empire State. The order backlog index continued its upward trend, rising to 46.5 from 41.9, and the supplier deliveries index jumped to 57.4 from 50.7. Outside the five weighted components of the headline, the index of prices paid rose to 52.6 from 48.6. The inventories component increased to 34.9 from 32.2, but remained well below the breakeven point of 50.0. Overall, the Chicago PMI continues to point to a solid manufacturing recovery, and market expects the persistent labor market weakness to reverse over the coming months as robust demand leads to further improvement in activity.