U.S. Economic Growth Slowed in August, Chicago Fed Says
By Xavier Fontdegloria
Economic growth in the U.S. moderated in August, adding to signs
of a slowdown in activity, data from the Federal Reserve Bank of
Chicago showed Monday.
The Chicago Fed National Activity Index fell to zero in August
from a revised 0.29 in July, suggesting the economy expanded at its
historical average growth pace.
The CFNAI index, designed to gauge overall economic activity and
inflationary pressures, is composed of 85 economic indicators from
four broad categories of data: production and income; employment,
unemployment and hours; personal consumption and housing; and
sales, orders and inventories.
The index's monthly decline in August was driven by
production-related indicators, whose losses offset gains from the
Production-related indicators contributed by minus 0.08 to the
index as industrial production declined 0.2% on month, the report
Employment-related indicators contributed 0.03 to the index in
August, less than 0.12 the previous month, as the unemployment rate
increased to 3.7% and payroll growth slowed.
The contribution of the sales, orders and inventories category
to the index fell to 0.01 in August from 0.03 in the previous
month, while the personal consumption and housing category
contributed by 0.05 from 0.01 in July.
The CFNAI diffusion index increased to 0.11 in August from 0.01
in July, while the index's three-month moving average, the
CFNAI-MA3, rose to 0.01 from minus 0.08.
Both indicators signal that the U.S. economy continued to expand
in the three months to August as the indexes are above the minus
0.35 and minus 0.70 values that, respectively, have been associated
with periods of economic growth.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
September 26, 2022 08:44 ET (12:44 GMT)
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