Chicago PMI Stuck In Contraction For 4th Straight Month

Despite weakness in regional Fed business surveys, analysts' expectations were for Chicago PMI to extend its rebound from multi-year lows in December, and it did, rising to 48.9 (47.9 exp).

This rise comes despite weakness in overall data, but as the chart shows PMI remains sub-50 (in contraction) for the 4th straight month...

(Click on image to enlarge)

Source: Bloomberg

5 of the survey's components rose in December, but it's not a pretty picture:

• Prices paid rose at a faster pace, signaling expansion
• New orders fell at a faster pace, signaling contraction
• Employment fell at a faster pace, signaling contraction
• Inventories fell at a slower pace, signaling contraction
• Supplier deliveries rose at a faster pace, signaling expansion
• Production fell at a slower pace, signaling contraction
• Order backlogs fell at a slower pace, signaling contraction

Regional fed business surveys are rolling back lower...

(Click on image to enlarge)

Source: Bloomberg

So much for the bottom being in.