For the third month in a row, Chicago Purchasing Managers signaled declining optimism about business. After some hopeful bounces mid-year PMI drops to 6-month lows (58.4 vs 60.0 expectations), catching down to the 'hard' data reality underlying the US "strongest economy ever."

Only 3 components rose relative to last month.

  • Prices paid rose at a slower pace, signaling expansion

  • New orders rose at a slower pace, signaling expansion

  • Employment rose at a faster pace, signaling expansion

  • Inventories rose at a slower pace, signaling expansion

  • Supplier deliveries rose at a faster pace, signaling expansion

  • Production rose at a faster pace, signaling expansion

  • Order backlogs rose at a slower pace, signaling expansion

Reality bites...

'Hope' was never a business strategy...