US economic activity softened in August, according to new data from the Chicago Federal Reserve, with its national activity index slipping back into negative territory.
Source: Sharecast
The Chicago Fed National Activity Index fell to -0.04 from +0.08 in July, with two of the four broad indicator categories weakening on the month and one making a negative contribution.
However, the three‑month moving average still managed to edge up to +0.01 from -0.01, suggesting underlying activity was broadly flat. The diffusion index, also a three‑month measure, eased to +0.02 from +0.04.
Of the 85 individual indicators tracked, 39 made positive contributions in August and 46 negative, while 34 improved on the month and 49 deteriorated.
Production‑related indicators were the main drag, contributing -0.07 compared with a flat reading in July, while sales, orders and inventories made no contribution, down sharply from +0.15 previously.
Employment indicators improved slightly, adding +0.01 after a -0.01 reading in July, while personal consumption and housing also contributed +0.01, reversing a -0.06 print the prior month.
Reporting by Iain Gilbert at Sharecast.com
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