National Association of Purchasing Management Chicago - NAPM Chicago

DEFINITION of 'National Association of Purchasing Management Chicago - NAPM Chicago'

An association which compiles a survey and index that monitors business conditions in Chicago and its surrounding areas. The National Association of Purchasing Management Chicago (NAPM Chicago) surveys firms in both the manufacturing and non-manufacturing sectors, and provides a reading above or below 50%. Readings above 50% indicate expanding business conditions, while a reading below 50% indicates contracting conditions.

BREAKING DOWN 'National Association of Purchasing Management Chicago - NAPM Chicago'

As with most other indicators that give readers a feel for current economic trends, the NAPM Chicago is useful to understand the overall direction of the economy. Equity markets would enjoy to see this indicator rise, as business expansion should lead to higher corporate profits, and thus rising stock prices. The bond markets would enjoy to see more moderate growth as to stem inflationary pressures that would hurt bond prices due to the erosion of purchasing power of the principle and coupon payments.

Because it is thought that the NAPM Chicago surveys the manufacturing sector primarily, it is thought to be a leading indicator of the ISM manufacturing index.

RELATED TERMS
  1. The National Association Of Purchasing ...

    A monthly index of U.S. manufacturing compiled by the Institute ...
  2. ISM Non-Manufacturing Index

    An index based on surveys of more than 400 non-manufacturing ...
  3. ISM Manufacturing Index

    An index based on surveys of more than 300 manufacturing firms ...
  4. APICS Business Outlook Index

    A national manufacturing index that surveys several manufacturing ...
  5. NY Empire State Index

    A seasonally adjusted index that tracks the results of the Empire ...
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on ...
Related Articles
  1. Insights

    4 Reasons Sprint Continues to Invest in Chicago (S, TMUS)

    Identify several key reasons why Sprint is investing heavily in Chicago as the company attempts to capture market share in the wireless industry.
  2. Markets

    Chicago PMI Misses, Falls Back Into Contraction

    ISM's Chicago PMI disappointed analysts, who expected it to remain in expansionary territory. The index has been see-sawing all year, and investors are looking
  3. Personal Finance

    Studying in the United States: Chicago

    Would you enjoy going to college in Chicago? Here's what it's like to study and live in the Windy City.
  4. Retirement

    Economic Indicators: Purchasing Managers Index (PMI)

    By Ryan Barnes Release Date: The first business day of the month Release Time: 10am Eastern Standard Time Coverage: Previous month's data Released By: Institute for Supply Management (ISM) Latest ...
  5. Retirement

    Economic Indicators: Business Outlook Survey

    By Ryan Barnes Release Date: Third Thursday of the month Release Time: 12pm Eastern Standard Time Coverage: Current ...
  6. Personal Finance

    Best Places to Exchange Currency in Chicago

    Whether you're leaving the Windy City or arriving with a stack of foreign cash, these are your best bets for currency exchange.
  7. Markets

    Does the Empire State Index Signal a Recession?

    This morning, the New York Federal Reserve Bank reported the worst numbers in six years for its August 2015 Empire State Manufacturing Survey, indicating not only a potential economic slowdown ...
  8. Markets

    Why the Purchasing Managers' Index Matters

    The Purchasing Managers' Index is a telling sign of the U.S. economy. But what is it?
  9. Trading

    Using The ISM Manufacturing Index To Find Forex Trends

    Learn the details behind the ISM Manufacturing Index and how you can use this data to find trends in the foreign exchange market.
  10. Personal Finance

    Top Choices For College In Chicago

    Check out these colleges and universities if you want to study in Chicago, one of America's most vibrant cities.
RELATED FAQS
  1. What's the difference between the Chicago Board of Trade (CBOT) and the Chicago Mercantile ...

    Read about the CBOT and Mercantile exchanges; both are futures exchanges that offer different futures contracts and specialize ... Read Answer >>
  2. What are the best MBA programs for corporate finance?

    Read about the best MBA programs for students who want to pursue a career in corporate finance, including those at Harvard, ... Read Answer >>
  3. What are the most common market indicators experienced traders follow?

    Take a look at some of the most popular market indicators used by technical analysts, including the advance/decline line ... Read Answer >>
  4. What is the history of futures?

    Explore the history of futures trading and the origin of the major commodity futures trading exchanges in England and the ... Read Answer >>
  5. What are the most common market indicators to follow the Canadian stock market & ...

    Learn key indicators used by analysts to follow the Canadian stock market and to gauge the condition of the overall Canadian ... Read Answer >>
  6. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center