US: Chicago Fed National Activity Index Drops To 0.13 In September From 0.05

Economic momentum is a general term that describes something very important.

Every month the Chicago Federal Reserve produces its National Activity Index. The NAI is a broad survey. It measures 85 different factors to produce a sense of whether economic activity is growing or falling overall nationwide. Factors studied include median income, production data, employment rates, consumption rates, business inventories, housing prices and much more.

The recent release of the the latest "Chicago Fed National Activity index revealed the second consecutive decline in economic momentum for the U.S. with a drop to -0.13 in September from 0.05 in August, the lowest level since April," the Action Alerts Plus Team wrote recently on Real Money.

A score above zero indicates that the economy is expanding its productive capacity and overall potential. The economy isn’t just growing, it is also expanding its potential for future growth. A score below 0.0 indicates that the economy is growing below its potential (or contracting). This suggests that the economy has resources that are going unused or productive capacity that is lying fallow.

TheStreet Recommends

div">>PRESS RELEASESGOTUh2 role="heading" aria-level="2"">

>ROSEN, SKILLED INVESTOR COUNSEL, Encourages Gaotu Techedu Inc. F/k/a GSX Techedu Inc. Investors To Secure Counsel Before Important December 20 Deadline In Securities Class Action - GOTU, GSX

9 minutes ago
div">>PRESS RELEASESh2 role="heading" aria-level="2"">

>Bavarian Nordic Reports Positive Topline Phase 2 Results For Its COVID-19 Vaccine Candidate

12 minutes ago
phoenix-picture">>AMC Theatres LeadPlayINVESTINGAMCDISNFLXh2 role="heading" aria-level="2"">

>AMC Stock: What to Expect From the Domestic Box Office

24 minutes ago

We’re holding a Veterans Day Sale for our Action Alerts PLUS investment club. Get in on the conversation and get the latest investment ideas and trading strategies. For 48 hours, we’re offering 30% off with this special sale. Click here and save $150. 

This is the idea behind economic momentum. The NAI measures whether the economy is gaining steam or losing it. A business which not only uses all of its machines, but which builds a new production center to increase capacity shows positive momentum. One which has production lines sitting idle shows negative momentum. 

At -0.13, as AAP suggests, this report is the latest indicator that supply chain issues continue to hold down potential growth nationwide. 

However, it is only one economic indicator. And as the AAP team noted, "at the same time the "Dallas Fed Manufacturing Index rose from September's 14-month low of 4.6 to 14.6." 

Source : https://www.thestreet.com/investing/understanding-economic-momentum

992
Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Source:AOL

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Source:Yahoo Finance

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Source:Yahoo Finance

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Source:Yahoo Finance

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair

Source:Yahoo Finance

Stock market news live updates: Stocks mixed, Nasdaq pulls back after Biden nominates Powell for Federal Reserve chair