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The Chicago PMI surged to 62.3 on Friday, pretty much off the chart. This was way above expectations and accompanied by a similar stellar reading from the Milwaukee NAPM. Media attention decided rather to focus on the second quarter GDP release and the hefty growth downgrades during the recession quarters (i.e. the rearview mirror). In my book the Chicago data hints that the slowdown in the economy, following the first rush of recovery, is temporary . One interesting ratio is the Chicago PMI new orders component relative to prices paid. New orders up, prices paid down. This is a great dynamic for a resumption of business energy and a pattern often seen in previous cycles. This is not double-dip action. The QSL is from Newsradio 780 WBBM Chicago IL received in 1989.
Saturday 31 July 2010
Chicago! Go Chicago!
The Chicago PMI surged to 62.3 on Friday, pretty much off the chart. This was way above expectations and accompanied by a similar stellar reading from the Milwaukee NAPM. Media attention decided rather to focus on the second quarter GDP release and the hefty growth downgrades during the recession quarters (i.e. the rearview mirror). In my book the Chicago data hints that the slowdown in the economy, following the first rush of recovery, is temporary . One interesting ratio is the Chicago PMI new orders component relative to prices paid. New orders up, prices paid down. This is a great dynamic for a resumption of business energy and a pattern often seen in previous cycles. This is not double-dip action. The QSL is from Newsradio 780 WBBM Chicago IL received in 1989.
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