by Calculated Risk on 10/29/2010 09:55:00 AM

Two stories ...

Chicago PMI stronger than expected

From the Institute for Supply Management – Chicago: The overall index increased to 60.6 vs 60.4. Note: any number above 50 shows expansion. Employment index increased to 54.6 from 53.4 in September. The new orders index increased to 65.0 from 61.4.

Overall this was a positive report. The national ISM manufacturing index will be released on Monday.

Consumer Sentiment weaker than expected

From MarketWatch: Consumer sentiment falls in October to 67.7

Click on graph for larger image in new window.

This was a big story in July when consumer sentiment collapsed. Sentiment in October was slightly below the level in July - and this is the lowest level since late 2009.

Consumer sentiment is a coincident indicator and reflects the weak economy.