Welcome Back Recession: Chicago PMI Implodes To 49, First Sub-50 Print Since September 2009
Total collapse. That is the only way to explain what just happened with the Chicago PMI which imploded from 52.4, and printed at a contractionary 49: the first sub-50 headline print since September 2009. But that's not all: Deliveries, Prices Paid and Production all hit their lowest since 2009; Backlogs posted their tenth month of contraction in the past 12 months. And what's worst for the Department of Making Shit Up, Employment plunged from 551. to 48.7, its third month over month decline. Actually another way to phrase it: complete disaster. Obviously this number explains why S&P should have no problems crossing 1,600 today. Because for that other Department: of Propaganda and Creating money out of thin air, this means only one thing: the Fed is preparing to print ONE KROOGOL MORE!
It appears nobody told the respondents that the economy is back in stall speed.
- Business activity was soft again in March, but we are optimistic for 2nd quarter and overall for 2013. Seems like some key raw materials are forecasted to moderate and even decline a bit over next several months, e.g. linerboard, resins.
- Our orders are consistent, we have a steady flow of work currently, 1st quarter was a huge improvement from 2012 start.
- New order intake is steady but remains at the lowered 2012 level. Afraid this may become the dreaded "new normal".
- "Business is steady as she goes."
- The economy is looking as if it is turning the corner. It is slowly gaining and looks like it will continue to do so.
Full horrendous report here
Meanwhile, elsewhere in contradictory reports...
Consumer Confidence just smashed expectations to the upside by the most in 14 months...
Led - surprise - by hope and dreams of the future... at its highest in 5 months...