Chicago PMI Re-Slumps Back Into Contraction

Despite hope that August’s bounce back into expansion would continue, September saw the key survey slump back into contraction (47.1 vs 50.0 exp) for the 3rd month in the last four…

Source: Bloomberg

This was at the very low end of the forecast range (47 – 52.2 from 27 economists surveyed).

Under the hood, things were not pretty:

• Prices paid rose at a slower pace, signaling expansion

• New orders fell and the direction reversed, signaling contraction

• 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 fell at a faster pace, signaling contraction

• Order backlogs fell and the direction reversed, signaling contraction

Getback to work Mr.Powell!