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Against expectations of a modest decline, the Chicago PMI for July tumbled from 56.0 to 52.1 (well below the 55.0 expected) – the worst in 2 years…
Source: Bloomberg
Under the hood, only 2 components rose from last month:
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Prices paid rose at a faster pace; signaling expansion
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New orders fell at a faster pace; signaling contraction
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Employment rose at a faster pace; signaling expansion
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Inventories fell and the direction reversed; signaling contraction
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Supplier deliveries rose at a slower pace; signaling expansion
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Production fell and the direction reversed; signaling contraction
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Order backlogs fell and the direction reversed; signaling contraction
That has a very stagflationary stench to it.
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Image and article originally from www.zerohedge.com. Read the original article here.