Earlier today the Federal Reserve Bank of Chicago reported that manufacturing activity decreased 0.53 percent in April. The decline follows a 0.23 decline in March. This information only serves to reinforce information presented in my earlier post (i.e. national economic activity is weak).
According to the report: “Three of the four broad categories of indicators that make up the index decreased from March, and none of the categories made a positive contribution to the index in April.” Manufacturing production declined 0.4 percent in April, and follows a 0.3 percent decline in March.
The consumption and housing category was also weak, declining 0.17 percent in April from a 0.15 percent decline in March. The negative numbers indicate that national economic activity is below historical trend.
