Chicago PMI rises slightly in April

CHICAGO, April 30 (Xinhua) -- The Chicago Purchasing Managers Index (PMI), a leading indicator of the U.S. economy, rose 0.2 points to 57.6 in April, ending a downward trend in the previous three months.

Business activity continued to rise at a solid pace in April, with growth in firms' operations up for the first time this year, though marginally, according to a report released on Monday by the Institute for Supply Management (ISM) - Chicago.

"While the Chicago business barometer ended a three-month falling streak in April, supply constraints faced by firms intensified and continue to weigh on activity," said Jamie Satchi, an economist at MNI Indicators, a partner with ISM in compiling the index.

Three of the five components of the Chicago business barometer, including new orders, order backlogs and employment, fell on the month, while production and supplier deliveries found room to grow.

Supplier delivery times continued to lengthen as sourcing steel was particularly difficult, pushing the associated indicator up almost 20 percent amid dearer material prices and the more recent implementation of tariffs, said the monthly report.

"Longer delivery times are proving attritive, while dearer materials bite further into margins," Satchi added. Enditem