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Sweet Home Chicago? Chicago PMI Unexpectedly Plummets, Longest ‘Contraction’ Streak Since Great Financial Crisis
Confounded Interest ^ | 05/31/2023 | Anthony B. Sanders

Posted on 05/31/2023 8:56:11 AM PDT by Kaiser8408a

Sweet Home Chicago!

After the unexpected resurgence in April, Chicago PMI plunged in May from 48.6 to 40.4 (against expectations of 47.3). That is the ninth straight month below 50 (in contraction)…

Source: Bloomberg

That is the longest streak of prints in ‘contraction’ since the Great Financial Crisis.

Under the hood, none of the underlying drivers were higher MoM…

Prices paid rose at a slower pace; signaling expansion New orders fell at a faster pace; signaling contraction Employment fell and the direction reversed; signaling contraction Inventories fell at a faster pace; signaling contraction Supplier deliveries rose at a slower pace; signaling expansion Production fell at a faster pace; signaling contraction Order backlogs fell at a faster pace; signaling contraction This continues a trend of ‘soft’ survey data disappointing notably.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: biden; economy; pmi; recession
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Great job Biden!!!
1 posted on 05/31/2023 8:56:11 AM PDT by Kaiser8408a
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To: Kaiser8408a

Philippine Maritime Institute?

Pre-Menstrual Irritation?


2 posted on 05/31/2023 9:02:27 AM PDT by Larry Lucido (Donate! Don't just post clickbait!)
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To: Kaiser8408a

“Unexpectedly!”

Everyone take a drink!


3 posted on 05/31/2023 9:03:47 AM PDT by CFW (old and retired)
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To: Kaiser8408a
Years of Democrat rule coming home to roost.
4 posted on 05/31/2023 9:04:33 AM PDT by Worldtraveler once upon a time (Degrow government)
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To: Worldtraveler once upon a time

Also:

“The Dallas Fed general business activity index for Texas’ service sector fell to -17.3 in May of 2023 from -14.4 in April, worse than market forecasts of -16, in a sign perceptions of broader business conditions continued to worsen. Decreases were seen in employment (4.2 vs 5.5), input prices (31.8 vs 35.5) and wage pressures (16.6 vs 18.4) while activity growth was steady (revenues index at 6.9 vs 6.9 in April). Also, capital expenditures increased slightly (11.5 vs 10.3). Meanwhile, the company outlook index worsened a bit to -9.5 from -9.4 and the outlook uncertainty index fell to 15.8 from 16.1. At the same time, the future general business activity index decreased to -13.2 from -13. source: Federal Reserve Bank of Dallas”


5 posted on 05/31/2023 9:05:31 AM PDT by CFW (old and retired)
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To: Larry Lucido

https://www.investopedia.com/terms/p/pmi.asp


6 posted on 05/31/2023 9:07:50 AM PDT by rightwingcrazy (;-,)
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To: Larry Lucido

Purchasing Manager’s Index. Basically an economic indicator for how manufacturing and sales are doing.


7 posted on 05/31/2023 9:13:20 AM PDT by Boogieman
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To: Larry Lucido

Pre-coding Matrix Indicator


8 posted on 05/31/2023 9:25:08 AM PDT by enumerated ( )
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To: enumerated

I knew it!


9 posted on 05/31/2023 9:31:56 AM PDT by Larry Lucido (Donate! Don't just post clickbait!)
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To: Boogieman; Kaiser8408a; rightwingcrazy

Boring!

OP blew his chance to define his acronym. I’m going with Chicago Pastrami Makers Institute.


10 posted on 05/31/2023 9:40:45 AM PDT by Larry Lucido (Donate! Don't just post clickbait!)
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To: rightwingcrazy

Thanks, rightwing, ... so PMI is a tool provided to Purchasing Managers to assist them in purchasing the proper amount of stock or hiring the proper staff to serve the predicted sales?


11 posted on 05/31/2023 9:48:22 AM PDT by Navy Patriot (Celebrate Decivilization)
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To: Navy Patriot
PMI is a tool provided to Purchasing Managers to assist them

The purchasing managers provide the data, it is not a tool for purchasing managers. It’s a regular monthly economic report.

Here’s an economic indicator/report calendar for anyone that’s interested.

12 posted on 05/31/2023 10:14:07 AM PDT by ConservativeInPA ("How did you go bankrupt?s" Bill asked. "Two ways," Mike said. "Gradually and then suddenly." )
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To: Worldtraveler once upon a time

Years? Try decades.


13 posted on 05/31/2023 10:22:52 AM PDT by DownInFlames (P)
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To: Boogieman

I’m not sure if I understand this.

Are you talking about retail sales for goods and services in Chicago?

What is manufactured in Chicago? Very little.

This is compared to what?

What was it ten years ago?

What has happened to home sale values?

Have taxes gone up in the past five years?


14 posted on 05/31/2023 11:09:58 AM PDT by nikos1121
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To: nikos1121

It measures a whole range of things. Not just manufactured goods, but inventories on hand, sales orders, etc. It is compared, just like with any index, against itself from other time periods. And yes, there is quite a bit manufactured in Chicago, or in the Chicago area. There are some big companies like Motorola, Abbott Labs, ConAgra, ADM and Caterpillar based in Chicagoland.


15 posted on 05/31/2023 11:26:03 AM PDT by Boogieman
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To: Navy Patriot

Sorry, your question exceeds my competence in the matter. I’ve been shooting for polymath, but so far I’ve had to settle for dilettante.


16 posted on 05/31/2023 11:29:33 AM PDT by rightwingcrazy (;-,)
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To: Boogieman
Purchasing Manager’s Index.

And here I was trying to change my Private Mortgage Insurance!
17 posted on 05/31/2023 11:41:29 AM PDT by Dr. Sivana ("If you can’t say something nice . . . say the Rosary." [Red Badger])
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To: Boogieman

Caterpillar has offices in Chicago. I hear they plan to move. They have no manufacturing in Chicago. It’s in Aurora and Joliet, if any.

The others you mentioned, I can’t know.

The bottom line is the article is worthless, as it really doesn’t tell us what the numbers were 5 or 10 years ago etc.

I left downtown Chicago after my mother and aunt died about 5 years ago. I haven’t looked back.

Naturally, I still want to know how things are.

IT seems like we definitely know crime is up, but how about property values in downtown Chicago. Are people still paying top dollar for all the high rise condos?

Have taxes gone up?

I heard 40% occupancy of retailers on Michigan Ave.? That can’t possibly be true.


18 posted on 05/31/2023 11:49:18 AM PDT by nikos1121
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To: nikos1121

“It’s in Aurora and Joliet, if any.”

Which are generally considered part of the Chicagoland area, and these indixes usually are taken over the whole metropolitan area, not just within the city limits. The CPI range for Chicago even extends to Kenosha, Wisconsin and Gary, Indiana, for example.

“how about property values in downtown Chicago. Are people still paying top dollar for all the high rise condos?”

Oh yeah, prices downtown and on the Gold Coast are still high, for the residential stuff at least. Commercial real estate is not at San Fransisco levels of Armageddon yet, but a lot of businesses downsized with the “work from home” trend, and a lot of retail, if it is still open, is probably still trying to catch up on rent they owe their landlords from the pandemic. We have commercial tenants who basically owe us 2 years of rent, but it’s not worth it to evict them because we would probably not get another tenant in there to replace them.


19 posted on 05/31/2023 11:58:39 AM PDT by Boogieman
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To: Boogieman

Are you sure of the values?

I looked at some of the listed real estate.

The glaring thing is that you have so many properties listed.

I don’t see a lot of condo properties that were selling at $1 million dollar five years ago. It looks like a buyer’s market.

IOWs, if you bought a luxury condo for $800,000 five years ago, I don’t think you’d be getting your money out of it.


20 posted on 05/31/2023 12:09:29 PM PDT by nikos1121
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