The Chicago PMI jumped to 63.8 in January from a revised 58.7 in the prior month. Readings above 50 indicate an expanding economy.
The December reading was revised from the initial estimate of 59.5.
Economists had expected the PMI would moderate slightly in January.
The Chicago PMI is the last of the regional manufacturing surveys to be released before the national ISM factory data for January is released on Monday.
Other regional reports have generally been strong this month as the factory sector has adjusted to the pandemic. It is the service sector that has been hammered.
The ISM factory index rose to 60.5 in December, its highest level since August 2018.
Market reaction: The Dow Jones Industrial Average
DJIA,
was down 310 points in early Friday trading.
