Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Employment Collapsed In Today's Chicago PMI Report, But It's A Mistake To Freak Out About It
TBI ^ | 12-28-2012 | Sam Ro

Posted on 12/28/2012 8:26:22 AM PST by blam

Employment Collapsed In Today's Chicago PMI Report, But It's A Mistake To Freak Out About It

Sam Ro
December 28, 2012

Earlier this morning, we learned that the Chicago PMI climbed to 51.6 in December. This was slightly ahead of economists expectations.

The gain was largely driven by a jump in the new orders sub-index.

However, the employment index collapsed to a three-year low.

Should we be worried?

TD Securities' Eric Green thinks we should take a deep breath and think about what happened.

"That may look worse than it really is, however," he writes. "The drop in employment reflects the prior weakness in new orders in November and to a lesser degree owing to the fiscal cliff which breeds well understood uncertainty."

Indeed, the exact opposite of what happened in this month's employment index could happen in an upcoming month.

"With the bounce back in new orders, employment will also bounce back, and ultimately everything flows from new orders which is now comfortably back above its 6m average of 50.8," writes Green. "Fade the weakness in employment and treat the release in much the same way as the headline would suggest which is better, not worse."

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: economy; employment; jobs; pmi

1 posted on 12/28/2012 8:26:28 AM PST by blam
[ Post Reply | Private Reply | View Replies]

To: blam

Do these commentators actually run businesses and make hiring and firing decisions. The question answers itself.


2 posted on 12/28/2012 8:36:35 AM PST by vbmoneyspender
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

There is no one to hire in Chicago. Some are out shooting people and some are dead.


3 posted on 12/28/2012 8:38:57 AM PST by presently no screen name
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

>> “With the bounce back in new orders, employment will also bounce back, and ultimately everything flows from new orders...”

Yeah, that’s the conventional wisdom; it applied in the times before Obama’s socialism, when it was less problematic to hire employees.

Now companies are working hard to squeeze productivity out of existing staff, aided by generous application of automation.

Or sending the problem offshore.


4 posted on 12/28/2012 8:55:58 AM PST by Nervous Tick (Without GOD, men get what they deserve.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: presently no screen name

And...........they’re all Democrats.


5 posted on 12/28/2012 9:52:45 AM PST by Rich21IE
[ Post Reply | Private Reply | To 3 | View Replies]

To: blam

What’s a PMI ?


6 posted on 12/28/2012 10:27:15 AM PST by mosesdapoet ("A voice crying in the wilderness make streight for the way of the Lord")
[ Post Reply | Private Reply | To 1 | View Replies]

To: mosesdapoet

A survey of puchasing managers known as the purchasing managers index.


7 posted on 12/28/2012 11:29:36 AM PST by staytrue
[ Post Reply | Private Reply | To 6 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson