U.S. Economic News
May 20, 2019
U.S. Economic Indicators
The Chicago Fed National Activity Index fell from +0.05 (revised) in March to -0.45 in April. The sales, orders, & inventories and employment categories contributed positively, while the production and housing & consumption categories contributed negatively. Chicago Fed Report
U.S. News
According to the Wall Street Journal, spending on factories, equipment, and other capital goods by large U.S. firms slowed in the first quarter of 2019, suggesting that a key driver of economic growth may be fading. Lingering trade tensions with China are making companies and customers cautious, raising the likelihood of slower growth later this year and into 2020. WSJ
The Financial Times reports that the quality of big U.S. banks’ commercial lending portfolios is deteriorating for the first time in nearly three years amid a sudden rise in the proportion of non-performing loans. Although the level of non-performing loans remains historically low, the sudden uptick is concerning given low interest rates and strong economic growth. FT