Chicago PMI surges to 75.2, strongest since 1973

• May Chicago PMI:  75.2 vs. 68 consensus and 72.1 prior, indicates highest level since November 1973.
• New Orders gained 7.7 points, highest level since December 1983, while production slowed 2.3 points; anecdotal evidence signals strong consumer demand, partly due to the fear of raw material unavailability.
• Order Backlogs jumped 7.5 points, hitting a 70-year high, with logistical issues and personnel shortages are driving backlogs.
• Inventories dropped to a 9-month low, the second successive reading below the 50-mark.
• Employment declined 6.5 points, post two consecutive months of readings above 50.
• Factory-gate prices dropped 3.1 points in May, down from April’s 41-year high.
• Supplier Deliveries rose 5.9 points to a 47-year high in May, with supply chain constraints remaining a serious problem.