The latest Chicago Purchasing Managers’ Index (PMI) reading has dropped to a concerning 36.9, far below the forecast of 42.7. This sharp decline from the prior reading of 42.7 signals a deeper contraction in the region’s manufacturing sector than expected.
The Chicago PMI is a key indicator of the manufacturing sector’s health. A reading below 50 indicates contraction, and at 36.9, the data clearly points to severe struggles within the industry. This unexpected drop raises alarm over the region’s economic future.
The decline suggests significant challenges, likely driven by economic uncertainty and market pressures. The ongoing downward trend heightens concerns about the broader economic outlook.
2 weeks ago #Powell was talking about how strong the US Economy is. I said then how baffled I was by that statement (still am!)
Today – Chicago PMI at 36.9
RECESSION IS COMING!
The FED is CLUELESS! pic.twitter.com/ElU1uKT695
— Henrik Zeberg (@HenrikZeberg) December 30, 2024
Sources:
https://tradingeconomics.com/united-states/chicago-pmi
https://www.fxempire.com/news/article/chicago-pmi-misses-the-mark-1486960
https://www.xtb.com/en/market-analysis/breaking-us-chicago-pmi-reading-much-lower-than-expected