Chicago Fed Report Says August Was A Weak Month For The Economy

August was a weak month for the economy, based on the national activity index which came in at minus 0.41. The 3-month moving average is barely positive, at plus 0.01.

August's downswing is tied largely to the manufacturing component of the industrial production report which was hit by a reversal in vehicle production following its July surge. But employment, after boosting the index in July, was also weak in August. The report's two other components, consumption & housing and sales/orders/inventories, were both slightly negative.

This whole recovery has been softer than usual and indications of any pickup remain elusive.

Definition:
The Chicago Fed National Activity Index (CFNAI) is a monthly index designed to better gauge overall economic activity and inflationary pressure.