All bad economic news is unexpected, of course. Well, only for the media and Obama zombies.
The MNI Chicago Report said its purchasing managers’ index fell to 49.7 in September from 53.0 in August. Any reading below 50 indicates contraction. This is the lowest level in three years. The size of the decline was unexpected. Economists had expected only a small decline.
Amazing how consistently these so-called economist are wrong, huh?
Can you say recession, boys and girls?
The report for September’s Chicago purchasing managers is a huge disappointment, and the report is sending stocks further south (DJIA -112 and S&P 500 -11). The adjusted index fell to a recessionary/contraction level of 49.7 from 53.0 in August. This is a recessionary number and it echoes the cautious stance seen from CFO and CEO outlooks that came out this week from other sources.
More unexpected news:
The Institute for Supply Management-Chicago said its index of Midwest business activity fell in September to 49.7, falling below 50 for the first time since September 2009. A Reuters survey of economists expected a reading of 53.0 in September.
Meanwhile, consumer sentiment dipped to 78.3 from 79.2 in the preliminary September report, according to the Thomson Reuters/University of Michigan Survey. Economists expected a reading of 79.0 in a Reuters survey.