Chicago PMI Bounce Stalls, “Firms At Risk Of Being Over-Inventoried”

Following this morning’s ISM Milwaukee disappointment, missing for the 8th month sof the last 9(printing 47.67 vs 50.00 exp and hovering at 2 year lows) with production and prices plunging, Chicago PMI just printed a slightly disappointing 54.4 (against expectations of 54.5). After last month’s surprise bounce, this slowdown suggests there is little to no momentum in any ‘recovery’ stemming from a Q2 bounce. Weakness under the surface is broad and as purchasers warned “failure of New Orders to materialize “within the next few weeks” could put firms at risk of being over-inventoried and curtail producton levels.” Perhaps most worrying though is the 4th consecutive contraction in employment… but the recovery?

This post was published at Zero Hedge on 08/31/2015.