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Chicago Fed: National Activity Index suggests slower economic growth in May

"Led by declines in production-related indicators, the Chicago Fed National Activity Index (CFNAI) fell to –0.15 in May from +0.42 in April," the Federal Reserve Bank of Chicago announced on Monday.

Key takeaways from the official publication

  • The CFNAI Diffusion Index, which is also a three-month moving average, moved down to +0.10 in May from +0.23 in April.
  • Forty-three indicators improved from April to May, while 42 indicators deteriorated.
  • Manufacturing industrial production decreased 0.7 percent in May after increasing 0.6 percent in April. 
  • Employment-related indicators contributed +0.13 to the CFNAI in May, up slightly from +0.12 in April.
    • Nonfarm payrolls rose by 223,000 in May after increasing by 159,000 in April. 
  • The contribution of the personal consumption and housing category to the CFNAI edged down to –0.04 in May from –0.03 in April. 

United States Chicago Fed National Activity Index registered at -0.15, below expectations (0.09) in May

United States Chicago Fed National Activity Index registered at -0.15, below expectations (0.09) in May
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In view of Axel Rudolph, Senior Analyst at Commerzbank, the pair is expected to face some downside pressure in the near term. Key Quotes “USD/MXN ha
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