(RTTNews) - A closely-watched regional report released on Friday showed that business activity accelerated in the Chicago area in August. This followed strong statistics for the country’s second-quarter economic growth released earlier in the week, further raising hopes that the U.S. economy may not be as bad off as some experts had feared.

The Institute for Supply Management-Chicago revealed that its business index - generally known as the Chicago PMI - surged to 57.9 for August. This compared to the near-stagnant reading of 50.8 for the previous month.

For this index, any reading above 50 indicates expansion in the region, while a number below 50 would indicate contraction.

Statistics within the report pointed to more modest inflation during the month. The prices-paid index, a key inflation indicator, came in at 80.6 for August, down from 90.7 in July. In a statement, the ISM-Chicago said the moderation in inflation could be the result of commodity price declines working their way through the system.

Other indicators included in the Chicago PMI report pointed to renewed growth in production and accelerated expansion in new orders. The report’s production index jumped to 63.4 in August from 49.2 in July. The new orders index rose to 60.2 from 53.5 in the previous month.

Employment contracted at a faster pace during the month, according to the Chicago PMI report. The employment index dropped to 39.2 from a reading of 45.9 in July.

On Thursday, a government report showed that U.S. economic growth in the second quarter far exceeded the previous estimate, primarily due to an upward revision to exports.

The U.S. Commerce Department said that gross domestic product increased at an annual rate of 3.3 percent in the second quarter compared to the advance estimate of 1.9 percent growth. Economists had been expecting GDP growth for the quarter to be revised up to 2.7 percent.

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Posted in Categories: Economy, Forex, Releases, USA.

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