Chicago Fed’s national activity index slips in August

The Chicago Fed’s national activity index, which is designed to gauge overall U.S. economic activity, fell to 0.79 in August from a revised 2.54 in the prior month. The index’s three-month moving average, which tries to smooth out volatility, slipped to 3.05 from 4.23 in July.

A zero value of the index indicates the national economy is expanding at its historic trend rate of growth.

The July index was revised from an initial estimate of 1.18. The June index was revised to a record high 5.84 from 5.33.

The Chicago Fed index is a weighted average of 85 economic indicators. Forty-five made positive contributions in August. Still, 40 indicators deteriorated from July’s level.

Production-related indicators contributed 0.23 to the overall index in August, down from 1.26 in the prior month. Employment-related indicators added 0.63, down from 0.65 in July.