Reply #33: OK. What it really means it.

[Frodo]

From Briefing.com:

Highlights

January Chicago PMI 65.9 (4.7 pts) -- highest level since July 1994.

Key Factors

Forward looking component new orders provided a lift to 69.7 -- a new high and consistent with continued strength.
Production showed a far stronger rise to a tremendous 76.5 as low inventories (37.4) provides support.
Employment fell off to 48.3 and continues to bounce around near 50. Labor demand slow in improving.
Prices paid (67.8) led by energy prices and contrast with weak output pricing power.
Chicago along with the east coast manufacturing indices bode well for January ISM and the manufacturing outlook.


Translation - pretty good news for the economy going forward (That production number is hot), but not very good news for the unemployed - and therefore not great for Bush. Not "bad" you understand, but the markets will probably react better than the average voter.



We'll know more on Monday with the ISM index release.