Chicago PMI Crashes To 40, The 9th Straight Month Of Contraction
Chicago PMI courtesy of Trading Economics
The ISM Chicago Business Survey, is a regional view of the national economy by the Institute for Supply Management.
The PMI is a diffusion index. Readings above 50 indicate expansion. Readings below 50 indicate contraction.
The Chicago PMI reading combiners manufacturing and services into one report unlike the national ISM reports.
The Bloomberg Econoday consensus estimate for the Chicago PMI was 47.0 in a range of 44.5 to 47.5.
This was an unexpected crash. But it is a volatile diffusion index where direction matters more than magnitude.
Manufacturing ISM Contracts Six Straight Month, New Orders Down Eight Months
On May 1, I commented Manufacturing ISM Contracts Six Straight Month, New Orders Down Eight Months
(Click on image to enlarge)
Chart by permission from the Institute for Supply Management ® ISM®
ISM is in contraction for six months and has been signaling recession for five of them.
The Chicago PMI may be a prelude to the next national reports. ISM manufacturing and ISM Services reports will follow, with the former out tomorrow.
The BLS monthly jobs report will be Friday, June 2.
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