CFNAI indicates slower US economic growth in July
0 Comment(s)
Print
E-mail Xinhua, August 27, 2019
The Chicago Fed National Activity Index (CFNAI) fell to -0.36 in July from +0.03 in June, led by declines in production-related indicators.
The Federal Reserve Bank of Chicago reported on Monday that all four broad categories of indicators that make up the index decreased from June, and all four categories made negative contributions to the index in July.
The contribution from production-related indicators to the CFNAI declined to -0.25 in July from +0.09 in June.
Industrial production decreased 0.5 percent in July after increasing 0.2 percent in June. Manufacturing production decreased 0.4 percent in July after rising 0.6 percent in the previous month.
The contribution of the sales, orders, and inventories category to the CFNAI decreased to -0.05 in July from -0.01 in June.
Employment-related indicators contributed -0.01 to the CFNAI in July, down slightly from a neutral value in June. Total nonfarm payrolls increased by 164,000 in July after rising by 193,000 in the previous month. The contribution of the personal consumption and housing category to the CFNAI ticked down to -0.06 in July from -0.05 in June.
The CFNAI is a monthly index designed to gauge overall economic activity and related inflationary pressure. The index is a weighted average of 85 indicators of growth in national economic activity drawn from four broad categories of data: production and income; employment, unemployment, and hours; personal consumption and housing; and sales, orders, and inventories.
Go to Forum >>0 Comment(s)