Chicago Fed National Activity Index drops to 0.27 in September

The Chicago Federal Reserve announced on Monday the Chicago Fed national activity index (CFNAI), a weighted average of 85 different economic indicators, came in at 0.27 in September, down from an upwardly revised 1.11 in August (originally 0.79), pointing to slower growth in economic activity than in the previous month but still slightly above the average. That was the lowest reading since the sharp decline in April.

Economists had forecast the index to come in at 0.39 in September.

At the same time, the index’s three-month moving average fell to +0.51 in September from +0.71 in August.

According to the report, three of the four broad categories of indicators used to construct the index made positive contributions in September, but three of the four categories declined from August.

Production-related indicators made a negative contribution of -0.24 to the CFNAI in September, down from +0.31 in August. Meanwhile, the contribution of the personal consumption and housing category to the CFNAI improved to +0.09 in September from a neutral value in August. Employment-related indicators contributed +0.35 to the CFNAI in September, down from +0.71 in August. The contribution of the sales, orders, and inventories category to the CFNAI decreased to +0.07 in September from +0.10 in August.