Chicago PMI Tumbles As Inventories Collapse Most Since 1977

Tyler Durden's picture

Stocks dropped and bonds rallied modestly as the early subscribers received the Chicago PMI which missed expectations significantly. Seemingly, with taper in place, bad news is bad news as the 59.1 print (vs a 60.8 exp) is the biggest miss in 6 months. Under the covers things are even worse with the lowest employment index since April. Inventories also collapsed (by the most since 1977) which is a problem since New orders and production also plunged suggesting the post-government shutdown 'surprise' GDP-enhancing inventory-build is entirely a one-off event (as we noted here).

Biggest miss in 6 months...


Inventories collapsed the most since 1977...


and employment dumps...

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SmallerGovNow2's picture

OT but a must see video of the progressive 2014 agenda.  This is the future of the USSA...


Dr. Engali's picture

I read that piece. I would like for them to start fleecing shitbags like Reich, of course when the oligarchs talk about fleecing the rich, they really mean the middle class.

J Pancreas's picture

You got a green from me because your screen name is worthy of song and story. It takes a big man to admit he soils himself rotten at times.

SmallerGovNow2's picture

Got that right Doc.  Jus as it is the middle class that is SHOCKED to find out they are the one's with increasing premiums under Obamacare...

CH1's picture

So... all those empty stores really DO mean something?

Cursive's picture


Agreed.  It is hard to find certain items (ammo anyone?).  The proverbial "slow boil" obscures so much for us.  If we could walk the streets of 1996 tomorrow and then return to today, we would see how much smaller manufacturing and retail really is.  I see so many parallels to America right now and the end of the Soviet Union....

j0nx's picture

I see more parallels to 1937 Nazi Germany myself but that's just me...

Cursive's picture


I'm talking about things that I witnessed.  I wasn't alive during 1937.

roadhazard's picture

Neither was he but it sounds good and is good for up votes by others who were not there.

q99x2's picture

Get out if you still can.

Mexico look out here come the Americans.

hugovanderbubble's picture

Happy 2014, Tyler and all ZH members-team.

ThirdCoastSurfer's picture

Collapsing inventories is bad? For deflation maybe. A 59.1 print is hardly recession territory. Rampant inflation? maybe. ZH, your trying too hard to spin the wrong way. 

csmith's picture


John Law Lives's picture

That giant yellow duck needs... tweetment... stat!

NOZZLE's picture

But, but the consumer is confident.

disabledvet's picture

These store shelves are not empty...nor are they going to be. It's not like we need the stuff...we have too much stuff actually. I'm not too worried about the guns and bullets thing because once Americans started making things with their three d printers that cost 300 bucks "guns and ammo" were the first thing to run off the assembly line. I'm sure they'll figure out a lot of other...more practical...things soon (probably already) as well. Believe me the schematics of the car are far more valuable than the car itself. Forget "reverse engineering"...these things will be direct copies that are better than the originals save for the metals that are used. Amazingly we now have machines that can self replicate. Google up "riprap" and you'll see what I'm talking about. Talk about "into the rabbit hole."

AGoldhamster's picture

" ... as we noted here ... "

EXCELLENT observation.