Photo: AP Images
The Chicago Fed National Activity Index for the month of August came in at -0.87.Last month’s figure was revised up slightly from -0.13 to -0.12.
Some key points:
- Production indicators declined to -0.58 from +0.08 last month.
- Employment indicators declined to -0.04 from -0.02 last month.
- Consumption and housing decreased to -0.23 from -0.21 last month.
Below, more output from the report:
Led by declines in production related indicators, the Chicago Fed National Activity Index (CFNAI) decreased to -0.87 in August from -0.12 in July. All four broad categories of indicators that make up the index deteriorated from July, with each making a negative contribution to the index in August.
The index’s three-month moving average, CFNAI-MA3, decreased from -0.26 in July to -0.47 in August—its lowest level since June 2011 and its sixth consecutive reading below zero. August’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend. The economic growth reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.
The CFNAI Diffusion Index also moved lower in August, declining to -0.23 from -0.08 in July. 20-six of the 85 individual indicators made positive contributions to the CFNAI in August, while 59 made negative contributions. 20-nine indicators improved from July to August, while 55 indicators deteriorated and one was unchanged. Of the indicators that improved, 12 made negative contributions.
Here is a chart showing the latest deterioration in the index from the Chicago Fed:
Photo: Chicago Fed
ORIGINAL: This morning the U.S. gets two readings of manufacturing activity – the first is from the Chicago Fed at 8:30 AM ET, followed by the Dallas Fed at 10:30 AM.
Last month, the Chicago Fed National Activity Index measured a -0.13 reading, up from -0.34 in June but still indicating economic activity slightly below the historical average.
The average of the prior three readings of the indicator has been in negative territory for five straight months.
We’ll have both releases LIVE on Money Game.
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