Chicago Fed's May national economic index retreats into negative as factories slowed

[mahatmakanejeeves]

Chicago Fed’s May national economic index retreats into negative as factories slowed

Published: June 25, 2018 10:22 a.m. ET

Less-volatile 3-month average at lowest reading since January

By RACHEL KONING BEALS
NEWS EDITOR

The numbers: A measure of the U.S. economy from the Chicago Federal Reserve turned negative in May for the first time since January, tugged into the red by a slump in factory output.

The Chicago Fed’s index of national economic activity was a negative 0.15 last month, a retreat from the upwardly revised positive 0.42 reading for April. The index was also negative in May a year ago.

The index’s less-volatile, three-month moving average registered a positive 0.19 in May, down from positive 0.48 in April, also the lowest reading since January’s positive 0.08.

The Chicago Fed index is a weighted average of 85 economic indicators, designed so that zero represents trend growth and a three-month average below negative 0.70 suggests a recession has begun. Thirty-nine of the 85 individual indicators made positive contributions in May, while 46 made negative contributions. Forty-three indicators improved from April to May, while 42 indicators deteriorated.

[YessirAtsaFact]

1. An idiot and his tariffs

OrangeTurd has got to be deliberately hosing the recovery- or he’s a moron

Anyone with a basic understanding of economics could see this coming

[quartz007]

2. What is a good way to reduce the $800 Billion trade deficit

every year? I just can not see how China can afford a tariff war. Because China has a annual trade surplus $400-$500 Billion. If that goes away because Americans can not afford the higher prices for Chinese goods due to tariffs, China will deflate like a balloon hit by lightening.

Same thing on a smaller scale with EU & Mexico. I predict there will be no trade wars. The countries with huge trade surpluses can not afford trade wars.

[YessirAtsaFact]

3. The Great Depression was caused by tariffs restricting global trade

I don’t have a good answer regarding the trade defecits,

They seem less harmful to me than a worldwide recession/depression.

Whatever we do, I don’t want OrangeTurd in charge of it.

His “civility” guarantees retaliation.