US: Chicago Fed National Activity Index slumps to 0.79 in August vs. 1.95 expected

• Chicago Fed's National Activity Index dropped more than expected in August.
• US Dollar Index continues to climbg higher toward 93.50.

The Federal Reserve Bank of Chicago's National Activity Index (CFNAI) dropped from 2.54 (revised from 1.18) in July to 0.79 in August. This reading came in worse than the market expectation of 1.95.

Key takeaways

"The CFNAI Diffusion Index, which is also a three-month moving average, decreased to +0.62 in August from +0.73 in July."

"Forty-five of the 85 individual indicators made positive contributions to the CFNAI in August, while 40 made negative contributions.

"Twenty-nine indicators improved from July to August, while 56 indicators deteriorated. Of the indicators that improved, 11 made negative contributions."

Market reaction

The US Dollar Index continues to push higher after this data and was last seen gaining 0.41% on the day at 93.38.