Some Positive Data Points

I've cautioned recently that short term data points can be misleading and it may not be wise to put too much stock in any one bit of information the government spews out.  That said,  this morning gave the optimists some fresh meat to chew on.  The Chicago PMI (Puchasing Managers Index), which measures economic activity in the Chicago region came out with a better than anticipated reading of 60.0. This was an increase from the month earlier reading of 56.1. (For those unfamilar with these PMI inidices, 50 is 'break-even.' That is, a reading above 50 indicates that business conditions improving and a reading of below 50 suggests deterioration.)  All of the sub-components of the Index registered above 50 for the first time in a long time. We've come a long way in this regard: the index reading last January was an abysmal 31.4%.

Some perspective:  The Index is increasing at it's most rapid pace since January 2006. In addition, the employment index rose above 50 for the first time in two years.  Jobs?

Again, I don't want to read too much into these numbers, but it is hard to spin them into a negative picture.  Perhaps the surprise in 2010 will be the strength of the rebound in the economy.