After the unexpected resurgence in April, Chicago PMI plunged in May from 48.6 to 40.4 (against expectations of 47.3). That is the ninth straight month below 50 (in contraction)…
Source: Bloomberg
That is the longest streak of prints in ‘contraction’ since the Great Financial Crisis.
Under the hood, none of the underlying drivers were higher MoM…
- Prices paid rose at a slower pace; signaling expansion
- New orders fell at a faster pace; signaling contraction
- Employment fell and the direction reversed; signaling contraction
- Inventories fell at a faster pace; signaling contraction
- Supplier deliveries rose at a slower pace; signaling expansion
- Production fell at a faster pace; signaling contraction
- Order backlogs fell at a faster pace; signaling contraction
This continues a trend of ‘soft’ survey data disappointing notably.
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