Chicago Fed National Activity Index Sharply Lower

Industrial production once again pulled the national activity index sharply lower, this time for September. The index fell 0.45 in the month to pull the three-moving average down sharply to minus 0.24. Production-related indicators fell 0.4 percent reflecting in part a sharp decline in vehicle production tied to the GM strike which began mid-month September. Outside of production, components were little changed showing slight contraction for employment-related indicators as well as sales, orders & inventories and also personal consumption & housing. Despite general signs of overall health in 2019, this particular index has been weak most of the year.