US economic activity decelerated more than expected in August, according to this morning’s update of the Chicago Fed National Activity Index. The three-month average for the business cycle benchmark (CFNAI-MA3) declined to +0.07 for last month’s reading vs. a revised +0.20 for July. The latest figures still reflect an “above-trend” pace of growth for the world’s biggest economy, according to the Chicago Fed. Nonetheless, today’s release raises more doubts about the recent assumption that the US economy is accelerating.
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US economic growth will decelerate in the third quarter, according to The Capital Spectator’s median econometric nowcast. Today’s revised GDP estimate anticipates an increase of 2.2% (real seasonally adjusted rate) for the July-through-September period—down sharply from the 4.2% pace in the previous quarter, according to the Q2 report published by the Bureau of Economic Analysis (BEA) in late-August.
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