Sure, the headline Chicago PMI number looked fine, but dig a little deeper into the report, and check out some of the anecdotal business conditions that the Chicago-area purchasing managers are seeing.Maybe this is why the rally has evaporated.
You can get the full report here (.pdf).
The first is the best.
1. Suppliers have cut staff so much there is no support team when a failure occurs, the response is slow, laborious and inadequate.
2. Tight raw material inventories both in-house and at suppliers are making planning very interesting. Conservative forecasts make this a prudent strategy but current skittish markets can either validate or wreak havoc upon it. Roll the dice.
3. Small business lending is picking up a little. Foreclosures on both Commercial and Residential properties are increasing. We are beginning to see an increase in people walking away from their mortgage obligations because of the decrease in the underlying values of their properties.
4. Just wondering how long this will last! 5. Look for consumer food prices to rise soon. Food manufacturers simply cannot
continue to absorb commodity increases. 6. We have a price increase going into effect October 1st, which increases orders for
September. 7. For our business, there is a lot of forward looking quotational activity, no new orders,
but construction of projects which receive financial approval back in the Spring.