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

National Association of Purchasing Management Chicago (NAPM Chicago) is 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 of the growth status of business conditions that is either 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'

NAPM Chicago provides readings that give followers an idea of business conditions in the area. Their survey tells readers whether conditions are expanding or contracting. 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. Chicago School

    Chicago School is an economic school of thought that originated ...
  2. ISM Manufacturing Index

    The ISM Manufacturing Index is based on Institute for Supply ...
  3. Philadelphia Fed Survey

    The Philadelphia Fed Survey tracks regional manufacturing conditions ...
  4. Economic Conditions

    Economic conditions are the state of the economy in a country ...
  5. Chicago Mercantile Exchange - CME

    The Chicago Mercantile Exchange is a futures exchange which trades ...
  6. Booth School of Business

    Booth School of Business of the University of Chicago is considered ...
Related Articles
  1. Personal Finance

    How Expensive Is New York City To Live In?

    Considering how many people live in New York City, can it really be that much more expensive than other big cities? Take a close look at these figures.
  2. Investing

    The 5 Best Real Estate Lawyers in Chicago

    Read about some of Chicago's top lawyers working in real estate law, and find out what types of clients they serve and what services they offer.
  3. 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.
  4. Insights

    Empire State Manufacturing Survey: Upside Surprise

    The New York Federal Reserve's Empire State Manufacturing Survey came in at a seasonally adjusted 0.62 for March on Tuesday, much higher than Bloomberg's consensus estimate of -11.25 and well ...
  5. Insights

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  6. Insights

    2017 is the Year of Volatility: Natixis Institutional Investor Survey

    The survey of roughly 500 institutional investors indicates an interest in active management as market volatitlity continues to rise.
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 common strategy do traders implement when using the money flow indicator?

    Learn a common trading strategy traders implement with the money flow indicator to identify profitable trade entry and exit ... Read Answer >>
  3. What are the risks of investing in a bond?

    Are you thinking of investing in bond market? Learn more about bond market investment risk, including interest rate risk, ... Read Answer >>
  4. How do debit spreads impact the trading of options?

    Find out what it means when a bond has a coupon rate of zero and how a bond's coupon rate and par value affect its selling ... Read Answer >>
Trading Center