Chicago Fed: US Growth At Historical Trend Rate In July

0
US economic output accelerated in July, returning to its historical trend rate, according to this morning’s update of the Chicago Fed National Activity Index’s three-month average (CFNAI-MA3). The benchmark’s rise to 0.0 marks the strongest pace of growth in six months, based on CFNAI-MA3.

Today’s numbers offer additional evidence that the US economy has strengthened recently. Accordingly, recession risk is low via data through last month. The current CFNAI-MA3 reading of 0.0 for July is well above the -0.70 mark that signals the start of new recessions, according to Chicago Fed guidelines.

cfnai.1.24aug2015

Analyzing the updated CFNAI-MA3 data with a probit model continues to show that the probability is low (below 4%) that a recession started in July. The current risk estimate in the chart below is based on a probit regression that reviews the historical record of NBER’s business cycle dates in context with CFNAI-MA3. The low risk estimate is in line with last week’s update on business cycle risk via The Capital Spectator’s proprietary indexes.

cfnai.rec.probit.2015-08-24

Source: Chicago Fed: US Growth At Historical Trend Rate In July

Previous articleUS Market Correction: Will The Market Sell Off Continue Next Week?
Next article5 Stocks to Watch This Week 8/24
Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

LEAVE A REPLY

Please enter your comment!
Please enter your name here