Chicago manufacturing just fell off a cliff.
Chicago PMI dropped 10.5 points to 47.1 in August — back into contraction and the lowest since December. That's the biggest monthly drop since the pandemic.
Expectations were 58.3. Reality was 47.1. That's not a miss, that's a collapse.
New orders down 15.4 points. Production down 8.8 points, worst since December. Order backlogs crashed 12.1 points to their lowest since November.
Meanwhile, prices paid jumped 3.8 points to the highest since February 2022.
So we've got collapsing demand and rising input costs at the same time. That's the stagflation playbook.
Manufacturing might be entering a real downturn. When orders dry up this fast and costs keep climbing, margins get squeezed hard. Companies either cut production or eat the losses.
This isn't just one bad month. The momentum is clearly rolling over. Watch industrial stocks, freight data, and employment reports closely.
Chicago PMI dropped 10.5 points to 47.1 in August — back into contraction and the lowest since December. That's the biggest monthly drop since the pandemic.
Expectations were 58.3. Reality was 47.1. That's not a miss, that's a collapse.
New orders down 15.4 points. Production down 8.8 points, worst since December. Order backlogs crashed 12.1 points to their lowest since November.
Meanwhile, prices paid jumped 3.8 points to the highest since February 2022.
So we've got collapsing demand and rising input costs at the same time. That's the stagflation playbook.
Manufacturing might be entering a real downturn. When orders dry up this fast and costs keep climbing, margins get squeezed hard. Companies either cut production or eat the losses.
This isn't just one bad month. The momentum is clearly rolling over. Watch industrial stocks, freight data, and employment reports closely.
