Chicago PMI 2019 Collapse Is The Worst In Over 30 Years

Despite some rebounds in regional Fed surveys, Chicago PMI has fallen for five of the seven months so far in 2019, collapsing in July to 44.4 - the second weakest since the financial crisis.

This is the worst drop since the financial crisis.

This was dramatically below the 49.5 lowest analyst estimate.

Only 2 components rose month-over-month and New orders, Employment, Production and Order Backlogs all contracting

  • Business barometer fell at a faster pace, signaling contraction

  • 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 rose at a slower pace, signaling expansion

  • Supplier deliveries rose at a faster pace, signaling expansion

  • Production fell and the direction reversed, signaling contraction

  • Order backlogs fell at a slower pace, signaling contraction

This is the worst start to a year for Chicago PMI in at least 30 years...

Time to cut rates!!