The Chicago Fed National Activity Index shows a bit of slowing in the US economy
The Chicago Fed National Activity Index shows a bit of slowing in the US economy. The 3-month moving average for the index dropped from +0.12 in September to -0.01 in October. The biggest negative impact came from the production-related indicators. Most likely, manufacturing is starting to take something of hit due to the overall weakness of the global economy. Generally speaking, the news isn't anything to worry about at the moment. At -0.01, the index just says growth in economic activity is right at its historical trend. The number would have to be -0.70 or lower to show a recession. Also, 49 of the 85 components in the index made positive contributions. Employment-related indicators and the sales, orders, and inventories category both were well into positive territory. It's likely going to take November reports for us to get a clearer picture of how the economy is doing. (VIEW LINK)
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