US: Chicago PMI likely to print 59.0 in April - Nomura

Analysts at Nomura expect the Chicago PMI to come in at 59.0 in April, increasing from 57.4 in March.

Key Quotes

“The Chicago PMI points to continued expansion in business activity but the pace of expansion has been slowing in Q1. The decline in March was driven by a sharp drop in the production index, which fell 12.7 index points to 55.2, the biggest drop since February 2016. Considering other incoming business surveys, this drop appears transitory and could partly recover in April.”

“Moreover, similar to other surveys, the price paid index of the Chicago PMI report picked up in March, reflecting rising input prices which were partly boosted by the recent tariff announcement. Additional anecdotal accounts on the near-term impact of elevated concerns over US trade policies could be noteworthy in the upcoming report.”