Index Suggests Economic Growth Decreased in August

The Chicago Fed National Activity Index (CFNAI) decreased to –0.04 in August from +0.08 in July. Two of the four broad categories of indicators used to construct the index decreased from July, and one category made a negative contribution in August. The index's three-month moving average, CFNAI-MA3, increased to +0.01 in August from –0.01 in July.

The CFNAI Diffusion Index, which is also a three-month moving average, decreased to +0.02 in August from +0.04 in July. Thirty-nine of the 85 individual indicators made positive contributions to the CFNAI in August, while 46 made negative contributions. Thirty-four indicators improved from July to August, while 49 indicators deteriorated and two were unchanged. Of the indicators that improved, 11 made negative contributions.

• Production-related indicators contributed –0.07 to the CFNAI in August, down from –0.00 in July.
• The sales, orders, and inventories category's contribution to the CFNAI was +0.00 in August, down from +0.15 in July.
• Employment-related indicators contributed +0.01 to the CFNAI in August, up from –0.01 in July.
• The personal consumption and housing category's contribution to the CFNAI was +0.01 in August, up from –0.06 in July.