Chicago PMI Unexpectedly Plummets, Longest 'Contraction' Streak Since Lehman
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.