Chicago PMI Plunges To Worst Drop In 39 Years

Chicago PMI Plunges To 4-Year Low

After a brief, hope-filled, bounce in August, October’s Chicago PMI is a shitshow, plunging from 50.4 in August to 43.2 (contraction) in October (well below the 48.0 expected).

Source: Bloomberg

This is the biggest 8-month drop since July 1980…

Source: Bloomberg

Under the hood:

  • Prices paid rose at a slower pace, signaling expansion

  • New orders fell at a faster pace, signaling contraction

  • Employment fell at a slower pace, signaling contraction

  • Inventories fell at a slower pace, signaling contraction

  • Supplier deliveries rose at a faster pace, signaling expansion

  • Production fell at a slower pace, signaling contraction

  • Order backlogs fell at a faster pace, signaling contraction

This is unpossible… haven’t the people living in Chicago looked at the stock market recently?

 

Tyler Durden
Thu, 10/31/2019 – 09:50