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Chicago PMI came in at 64.3, blowing away expectations for the report to come in at 56.5, up from July's 52.6 reading, which was the lowest reading since June 2013.
Friday's report showed the barometer regained all of the ground lost in July. Friday's reading also marked the highest level for the report since May.
According to Bloomberg's Alex Tanzi, six of the report's components rose in August, including prices paid, new orders and inventory. The employment component of the report, however, fell in August.
Following the report, Philip Uglow, Chief Economist at MNI Indicators said, "We had speculated that July's downturn would prove temporary rather than signal the start of a downward trend. The sharp bounceback in August, with growth in output at the highest for nearly ten years, suggests that growth in the US economy will continue apace in Q3."