U.S. Economic News

February 24, 2020

U.S. Economic Indicators

The Chicago Fed National Activity Index increased from -0.51 in December to -0.25 in January. All four broad categories of indicators — employment, consumption, production, and sales, orders, & inventories — improved from December, but only the personal consumption category made a positive contribution to the headline index. Chicago Fed Report

U.S. News

The Wall Street Journal reports that manufacturers and supporting industries across the globe are feeling the pinch as the Chinese coronavirus disrupts supply chains of critical intermediary goods. Countries most reliant on China could see more than half a percentage point erased from 2020 GDP growth, while the global manufacturing sector could lose an estimated $1 trillion in lost output. WSJ

According to the Financial Times, Italy is increasingly likely to slip into a technical recession in the first quarter of 2020 as parts of the country go into lockdown to contain the spread of the Chinese coronavirus. Over the past several years, Italian export growth has slightly outpaced that of France and Germany, suggesting a sharp downturn could threaten the broader eurozone economy. FT