U.S. economic activity slumped in April, according to the Federal Reserve Bank of Chicago. The Chicago Fed national activity index, which draws on 85 economic indicators, was -0.45 in April versus an upwardly revised +0.05 in March (and expectations of -0.20).
33 of the 85 monthly individual indicators made positive contributions
52 of the 85 monthly individual indicators made negative contributions
Smoothing the somewhat noisy indicator over the last three months, this is the weakest level of national economic activity since May 2016…
A reading below zero indicates below-trend-growth in the national economy and a sign of easing pressures on future inflation.
…more bad news is good news? More ammo for The Fed to stay lower for longer.
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Author: Tyler Durden