U.S. Economic Growth Slowed in August -- Chicago Fed
By Xavier Fontdegloria
The U.S. economy continued to grow above-average in August,
albeit at a slower pace compared with July, data from the Federal
Reserve Bank of Chicago released Thursday showed.
The Chicago Fed National Activity Index fell to 0.29 in August
from 0.75 in July, missing the 0.65 consensus by economists polled
The CFNAI index is composed of 85 economic indicators drawn from
four broad categories of data: production and income; employment,
unemployment and hours; personal consumption and housing; and
sales, orders and inventories. A positive index reading corresponds
to growth above trend and a negative index reading corresponds to
growth below trend.
The CFNAI reading for August suggests a slowdown of economic
activity in the month.
All four broad categories of indicators used to construct the
index made positive contributions to it in August, but three
categories worsened from the prior month, the Chicago Fed said.
Production-related indicators contributed by 0.11 to the CFNAI
in August, down from 0.40 in July, as industrial production eased
to 0.4% in August after rising 0.8% the previous month.
The contribution of the employment, unemployment and hours
category to the CFNAI decreased to 0.12 from 0.38 the prior month
as the path of job creation decreased significantly.
The contribution of the sales, orders and inventories category
to the CFNAI fell to 0.03 in August from 0.07 in July.
The personal consumption and housing category contributed 0.03
points to the index, up from minus 0.09 in July, as personal
consumption indicators broadly improved compared with the previous
The CFNAI diffusion index declined to 0.30 in August from 0.34
in July, while the index's three-month moving average, the
CFNAI-MA3, rose to 0.43 from 0.36. Both the diffusion index and the
CFNAI-MA3 signal that the U.S. economy is expanding.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
September 23, 2021 08:44 ET (12:44 GMT)
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