Chicago Fed Index Shows US Growth is Slumping
- Chicago Fed National Activity Index falls 0.01% from an upwardly revised 1.0%.
- Economists missed the actual figure as they predicted activity to come in at 0.1%.
The latest Chicago Fed National Activity Index, a weighted average of 85 indicators of growth in US national economic activity, has fell 0.01% from an upwardly revised 1.0% in July. The forecasted figure was off by 0.11%.
The Chicago Fed Index is constructed to have an average value of zero and a standard deviation of one. A positive index reading corresponds to growth above trend and a negative index reading corresponds to growth below trend.
The soft print had a minor impact on the US Dollar and will largely be overshadowed by durable goods orders and Fed Chair Janet Yellen’s speech in Jackson Hole later this week.
Chart 1: EUR/USD Index 15-minute Timeframe (August 21, 2017 Intraday).
--- Written by Dylan Jusino, DailyFX Research
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