Econintersect: The Chicago Purchasing Managers index rebounded in September for a 24th month of expansion.
- EMPLOYMENT expanded to highest level in 4 months;
- NEW ORDERS erased net declines accumulated since April;
- ORDER BACKLOGS remained in contraction at a 23-month low;
- SUPPLIER DELIVERIES approached neutral.
- PRODUCTION MATERIEL moved to an 10-month high;
- CAPITAL EQUIPMENT lead times ended a 4-month uptrend.
This is a survey – and Econintersect has warned that surveys are opinion, and often are not supported by hard data. Further they are usually incorrect at economic turning points.
If this survey can be believed, the concern in the data is the reduction in unfilled orders. Unfilled orders do NOT contract during economic growth cycles.
source: Chicago PMI