Chicago PMI - Dec 2015

December 2015 Chicago PMI – "The December Chicago Business Barometer contracted at a faster pace in December, down 5.8 points to 42.9, a fresh 6-1/2 year low and the seventh contraction this year. The biggest contributor to the barometer's decline was a 17.2 point fall in Order Backlogs, to 29.4, marking their eleventh consecutive month in contraction. December's print was the lowest since May 2009."

There's that inventory management we commented about on Dec 22nd.  "So due to slowing sales, in order to hold down inventories , they did what? Ordered less.   Which will usually lead to a decline in production and if persistent, eventually employment."

Chicago PMI Readings of 42.9 and under have NEVER FAILED to be the harbinger of a recession. Nice graph. I'll say it again, Q12016 get ready for a negative GDP report.