US economic activity softens in August

(Sharecast News) - 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. 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