This may become a regular feature. Yesterday I pointed out how today’s weak economy is mirroring the bad state of affairs when Barack Obama took over as President. Obama decries how awful things were when he was handed the baton, but it looks like it will be just as bad for the next guy:
Chicago Business Barometer Falls Below 50 for First Time Since 2009
U.S. manufacturers suffered a slide in new orders during September, sending the keenly watched Chicago Business Barometer down to a seasonally adjusted 49.7 from 53.0 in August, the first contraction in three years.
Order backlogs also retreated to their lowest level in two years in the latest downbeat signal from a manufacturing sector still concerned with the pace of China’s economic recovery and the ongoing euro-zone crisis. While other regions have factory surveys from private groups or regional Fed banks, economists at BTIG point out the Chicago PMI has among the highest correlations with the national Institute for Supply Management survey. Firm says the Chicago PMI’s unexpectedly bad September report suggests this month’s reading for the ISM — out Monday — will be the fourth month in a row in which the index is below 50. And a reading below 50 means factory sector is contracting.
The survey of Chicago-area purchasing managers published Friday by the Institute for Supply Management-Chicago, still better known as the Chicago PMI, was well below the consensus forecast of 52.5.