WASHINGTON (Reuters) – U.S. economic activity slowed in August as production-related measures slumped and an employment gauge rose modestly, data from the Chicago Federal Reserve showed on Monday.
The Chicago Fed’s National Activity Index remained neutral last month after an upward revision to 0. 29 in July. The index had previously reported 0.27 in July. 0.12 compared to a year ago.
A monthly index of zero is associated with national economic expansion
Three of the four broad categories of indicators used to construct the index contributed positively in August, But three categories of indicators have deteriorated from July.
Production related indicators are negative 0.12, below 0.25 in July. The employment-related indicator was 0., down from 0.12 in July .
The index’s less volatile three-month moving average rose from minus 0 to 0 in August. 01. 08 in July. Historically, periods of economic growth have been associated with
three-month moving averages above negative 0. 70.
The economy is slowing under the weight of aggressive monetary tightening by the Federal Reserve. The U.S. central bank last week raised its policy rate by 75 basis points, the third straight increase in that rate. This bodes well for even greater growth this year.
Since March, the Federal Reserve has raised its policy rate from near zero to its current range of 3.0% to 3%. recession next year.