National Economic Activity Contracted For 3rd Month In A Row, Chicago Fed Signals

National Activity contracted for the 3rd month in a row according to The Chicago Fed's index. Printing -0.04 (missing expectations of +0.05 for the 9th time of the last 11 months), CFNAI has now been below 0 (contraction) for 8 months this year. Under the surface the biggest problem is the collapse in the sales-to-inventories index to cycle lows (contracting 7 of the last 8 months).

The heradline index is seen contracting for the 3rd month in a row...

 

as sales collapse relative to inventories...

 

Charts: Bloomberg