National Association of Purchasing Management Chicago - NAPM Chicago

AAA

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.

INVESTOPEDIA EXPLAINS '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. Economic Growth Rate

    A measure of economic growth from one period to another in percentage ...
  2. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  3. Economic Cycle

    The natural fluctuation of the economy between periods of expansion ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  5. Economic Growth

    An increase in the capacity of an economy to produce goods and ...
  6. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
RELATED FAQS
  1. What is GDP and why is it so important?

    The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents ...
Related Articles
  1. Investing Basics

    Economic Indicators That Do-It-Yourself Investors Should Know

    Understanding these investing tools will put the market in your hands.
  2. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  3. Active Trading

    Introduction To Stationary And Non-Stationary Processes

    What to know about stationary and non-stationary processes before you try to model or forecast.
  4. Retirement

    Economic Indicators To Know

    The economy has a large impact on the market. Learn how to interpret the most important reports.
  5. Personal Finance

    What Drives Consumer Demand for Tesla?

    Tesla did not invent the electric vehicle market, but it has brought to it elements of luxury and elite status. But what really drives demand for Teslas?
  6. 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.
  7. Investing

    How to Use Stratified Random Sampling

    Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroup’s ...
  8. Fundamental Analysis

    Lognormal and Normal Distribution

    When and why do you use lognormal distribution or normal distribution for analyzing securities? Lognormal for stocks, normal for portfolio returns.
  9. Investing Basics

    Using Normal Distribution Formula To Optimize Your Portfolio

    Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk.
  10. Technical Indicators

    The Normal Distribution Table, Explained

    The normal distribution formula is based on two simple parameters - mean and standard deviation

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center