Share
News

Report: Key Economic Indicator with 100% Track Record Just Flashed and Made a Prediction

Share

A key economic indicator called the U.S. Chicago Purchasing Managers Index has some very bad news about the economy, and, perhaps worse, the indicator has been right at predicting recessions 100 percent of the time for decades.

The CPMI assesses the business conditions and economic health of the manufacturing sector in the upper Midwest around the Chicago region and maintains that the economy is healthy if the index sits at 50.0 or above. But under 50.0 reveals a contracting manufacturing and business climate in the important region.

David Rosenberg, the founder and president of the market analysis firm Rosenberg Research & Associates Inc., has scanned the Chicago PMI and come to the disheartening realization that the index numbers are showing that we are in a recession.

As Rosenberg noted, this index has been 100 percent correct about predicting recessions for a very long time.

Nautilus Research added a chart that showed the times that the CPMI was at or below 35.4 and that every time it fell in a recession as far back as the 1960s.

Do you think a recession is coming?

Financial advisory company VettaFi has also warned that the CPMI is a worrisome indication of the health of the economy.

“The latest Chicago Purchasing Manager’s Index (Chicago Business Barometer) fell to 35.4 in May from 37.9 in April. This is the sixth straight monthly decline and the lowest level for the index since May 2020,” Jennifer Nash wrote on VettaFi’s website. “The latest reading is worse than the 41.1 forecast and keeps the index in contraction territory for a sixth consecutive month.”

Nash added that over the last 12 months, the index only rose above 50 once, in November. And between November and June, it has been plummeting.

Further, the Dow Jones Newswire reported that the CPMI reading was “well below expectations.”

Analysts had predicted that the index would hit 40.8 at the end of May, but that prediction was missed. The Dow Jones Newswire also added that May’s index was the sixth month in a row that resulted in a contraction.

Related:
James Carville Says Harris Should Stop Trying to 'Convince' Americans

This index, coupled with the ever-spiraling inflation rate, shows that Bidenomics has put America in a very dangerous position.

Also last month, the economic numbers showed that inflation remains stubbornly high and consumer confidence is very low, a one-two punch that means the economy is suffering.

In the face of the frequent false and overly rosy reporting in the establishment media, the Biden economy continues to fail, thanks to the inflationary forces bleeding Americans of their incomes and driving prices up for nearly everything. These pressures have caused Americans to sour on the nation’s economic health.

Consequently, the U.S. Bureau of Economic Analysis announced on May 31 that the Federal Reserve’s personal consumption expenditures price index increased 0.3 percent last month and 2.7 percent in the 12 months through April.

The numbers are no help for Bidenomics. According to the U.S. Inflation Calculator, the U.S. inflation rate has been more than double in each of Biden’s years over what it was when Trump was in office. When Biden took office, the inflation rate he inherited from Donald Trump was 1.4 percent. But the next year, it soared as high as 9.1 percent. And in the last reporting period, it was at 3.4 percent, still more than double Trump’s rate in late 2020.

Inflation has been bad enough, of course. But now, with the Chicago Purchasing Managers Index reading that we are in a strong recession, it seems that Bidenomics has gone from bad to worse.


An Important Message from Our Staff:

 

We who work here at The Western Journal have fought for years against Big Tech and the elites who want to shut us down and then shut America down. 

 

Make no mistake — nothing will be the same after November 2024. Will you help us fight? Will you help us expose the America-hating elites who will do everything they can to steal this election? 

 

We’re a small group of people fighting to save the country for our readers and for our own family and friends. Can we count on your help?

 

At this point, Big Tech has cut off our access to 90% of advertisers. Imagine if someone took 90% of your paycheck and there was nothing you could do. They’re trying to starve us out.

 

Donations from readers like you have literally helped keep our lights on, and we need you now more than ever. 

 

We operate on a shoestring budget, but with that budget, we terrify the globalists. Please help us continue the fight. Stand with us, and we will never surrender.

 

Thank you for reading The Western Journal and for believing in America. 

 

It is a pleasure to serve you.

 

P.S. Please don’t let the America-hating left win. Stand with us today!

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
, , , ,
Share
Warner Todd Huston has been writing editorials and news since 2001 but started his writing career penning articles about U.S. history back in the early 1990s. Huston has appeared on Fox News, Fox Business Network, CNN and several local Chicago news programs to discuss the issues of the day. Additionally, he is a regular guest on radio programs from coast to coast. Huston has also been a Breitbart News contributor since 2009. Warner works out of the Chicago area, a place he calls a "target-rich environment" for political news. Follow him on Truth Social at @WarnerToddHuston.
Warner Todd Huston has been writing editorials and news since 2001 but started his writing career penning articles about U.S. history back in the early 1990s. Huston has appeared on Fox News, Fox Business Network, CNN and several local Chicago news programs to discuss the issues of the day. Additionally, he is a regular guest on radio programs from coast to coast. Huston has also been a Breitbart News contributor since 2009. Warner works out of the Chicago area, a place he calls a "target-rich environment" for political news.




Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.

Conversation