Fed's "National Activity Index" Plunges To 2-Year Low

Just when you thought it was safe to declare the "trough" is in for economic weakness, The Chicago Fed's National Activity Index, which draws on 85 economic indicators, was minus 0.71 in October versus minus 0.45 in September.

  • 27 of the 85 monthly individual indicators made positive contributions

  • 58 of the 85 monthly individual indicators made negative contributions

Source: Bloomberg

And the recent rout of weakness has pushed the index to its weakest since October 2017...

A trade deal better hit soon (as if it's not priced in) because The Fed claims its on hold into this renewed weakness.