Thursday, December 30, 2010

Chicago PMI Surges To Highest Level Since July 1988

Keynesian economists have just been destroyed.

The consensus view among them was that the Chicago PMI would contract 3.0% in December from the November level of 62.5 to 61.0.

Instead, the Chicago PMI climbed to 68.6 in December, an unprecedented surge and the highest reading since July 1988!

From the ISM report:

Production reached its highest levels since October 2004;

New Orders improved to 2005 levels;

Priced Paid accelerated to its highest point since July 2008.

Here's Goldman's take via ZH:

BOTTOM LINE: Chicago purchasing managers' index jumps to a 22-year high as indexes of orders, production, and employment all post gains from already-strong levels. 
Keep in mind, this is the Chicago PMI and not the National PMI, which is due out later, and it probably has a lot to do with the commosity boom, but the recession is clearly history in the Midwest, and the Fed manipulated BOOM is on.

The Keynesian econometric trend followers are always the last to know.

1 comment:

  1. what the hell does this have to do with Keynesian economists?