The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector output by combining information obtained from surveys of around 1,000 manufacturing and service sector companies.

The flash data are released around 10 days ahead of the final report and are typically based upon around 85 percent of the full survey sample.

The report tracks changes in variables such as new orders, stock levels, employment and prices across both manufacturing and services. Production is also tracked, defined as "production" for manufacturing and "output" for services.

Results are synthesized into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster output is growing (contracting).

The Chicago PMI is a valuable tool in forecasting the Institute for Supply Management (ISM) manufacturing PMI. it is important to note that while a higher than expected reading is typically viewed as positive or bullish for the USD, a lower than expected reading is generally considered negative or bearish.

The official name of this report is ISM - Chicago although it is commonly referred to as the Chicago PMI.

The traditional name goes back to the years when the ISM was called the National Association of Purchasing Management.

The Philly Fed Index, also known as "The general business conditions index", is a good leading indicator for the index of industrial production. It is reported in the third week of the month and thus has a lead time of nearly three weeks.

The Philly Fed Index gauges changes in business growth in the third district including Pennsylvania, New Jersey and Delaware. The index above 0 indicates factory-sector growth while below 0 indicates contraction.

The Philadelphia Federal Reserve Bank has a business activity index that covers factories in eastern Pennsylvania, southern New Jersey and Delaware.

Any reading above zero indicates expansion in the region's manufacturing. Readings under zero denote contraction.