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?