Chicago PMI Unexpectedly Craters To Depression Levels

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Chicago PMI Unexpectedly Craters To Depression Levels

After unexpectedly slumping last month to 37.9, the Chicago PMI index cratered even more unexpectedly in May, when it defied hopes of a rebound to 41.5, and instead tumbled even more, sliding to a cycle low of 35.4 which was not only below the lowest estimate, but was staggeringly low. To get a sense of just how low, the last two times it printed here was during the peak of the covid and global financial crises which seems to suggest that at least according to Chicago-based purchasing managers, the economy is in a depression.

Chart: https://assets.zerohedge.com/s3fs-public/inline-images/chicago PMI 2.jpg?itok=ZPElkziB

Source: Chicago PMI Unexpectedly Craters To Depression Levels | ZeroHedge

 

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The Chicago PMI came in at 47.4 vs. 40.0 estimated. Anything under 50 is a contraction in manufacturing, but it was much better than last month's disaster reading of 35.4, which hopefully was an anomaly.