Chicago Fed National Activity Contracts for First Time in Five Months

Source: Chicago Fed

The Chicago Fed National Activity plunged to negative territory in September after four months of growth, dragged by production issues.

• The Chicago Fed National Activity Index (CFNAI) fell to -0.13 in September after hitting +0.05 in August and +0.37 the same month last year.
• The latest reading is the first contraction recorded in five months since the index stood at -0.12 in April.
• Production-related indicators contributed -0.37 to the index, down from -0.08 the previous month. Industrial production slipped 1.3%.
• Sales, orders, and inventories edged higher to +0.07 during the month from +0.01 in August, while employment indicators contributed +0.16.
• The unemployment rate fell 0.4 percentage points after declining 0.2 percentage points in August, but nonfarm payrolls climbed 194,000.
• The three-month moving average stood at +0.25, the weakest in five months since April’s +0.19.
• The CFNAI Diffusion Index was recorded at +0.22, up from +0.20 in August but lower than +0.58 a year ago.