After crashing to post-Lehman lows in December, there was some hope for a bounce in January but this is simply idiotic. Chicago PMI soared 30% – the most sicne 1980 – from 42.9 (7 year lows) to 55.6 (1 year highs). This was miraculously driven by double-digit and all-time record gains in new orders and order backlogs.
Behold… everything is awesome again!
As MNI adds,
While the surge in activity in January marks a positive start to the year, it follows significant weakness in the previous two months, with the latest rise not sufficient enough to offset theprevious falls in output and orders. On previous occasions, surges of such magnitude have not been maintained.
While there is typically a mild seasonal pick up in January, some purchasers noted the "typical 'hockey stick' order cycle was not as steep as in previous years.
The uptick in ordering and output was not accompanied by a surge in hiring, though it can lag. Employment, which did not suffer as much during November and December's output downturn, contracted at a slower pace, marking its fourth consecutive contraction.
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via Zero Hedge http://ift.tt/1SonpGS Tyler Durden