Research >> Economics
Chicago PMI Deteriorated further
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The Chicago Purchasing Managers reported the CHICAGO BUSINESS BAROMETER indicated continued deterioration of the USA economy in January…at a somewhat faster rate:
BUSINESS ACTIVITY:
PRICES PAID index decline continued, but at a moderated rate;
PRODUCTION and NEW ORDERS indexes fell to lowest levels in more than 28 years;
EMPLOYMENT continued year-long decline;
ORDER BACKLOGS index continued near 28 year low;
BUYING POLICY: lead-times lengthened.
The Chicago Business Barometer peaked in October 2004, marking and an irregular descent towards the current recession. The modest increase in December (1.5 points) was the equivalent of negligible softening of pressure on the hard braking of the USA economic vehicle. The increased braking resumed in January as the Barometer fell to a new cyclical low (33.3). Concurrently, the Prices Paid index collapsed 21 points in December, making the transition from narrow inflation to broad deflation. In January, the rate of spreading deflation the Prices Paid index move toward neutral.
Posted: January 30, 2009 Friday 10:00 AM