Is The ‘V’ Over? Chicago PMI Disappoints

While August’s Chicago PMI remains in ‘expansion’ at 51.2 (above 50), it was below expectations and below July’s resurgent V-shaped recovery hope…

Source: Bloomberg

Under the hood, it’s a mixed picture:

• Prices paid rose at a slower pace; signaling expansion

• New orders rose at a faster pace; signaling expansion

• Employment fell at a slower pace; signaling contraction

• Inventories fell at a faster pace; signaling contraction

• Supplier deliveries rose at a faster pace; signaling expansion

• Production rose at a faster pace; signaling expansion

• Order backlogs fell at a faster pace; signaling contraction

A temporary blip? Or reflective of the end of the handouts?