Surprising strength in Chicago

The Chicago purchasing managers index came in surprisingly strong -- at 56.6 in December versus 52.9 in November and expectations for a reading of 51.7. Among key subindices, prices paid cooled to 63.8 from 76.2 while new orders rose to 58.4 from 53.9 and employment declined to 49 from 54.4. There hasn't been much of a market reaction yet, perhaps because the more important report on new home sales is coming out soon.