Chicago Federation Says US loses economic growth momentum in June

The U.S economic growth lost momentum in the month of June according to Chicago Federal Reserve Bank.   According to the data released by the Chicago De National Activity Index, the economic growth activity and inflation pressure faltered slightly in June. It fell down to 0.09 from 0.26 in the month of May. The index takes into account 85 economic indicators which draws from four categories of data.

The categories include overall production, income, employment & unemployment rate, individual consumption rate and housing, sales data, total orders and inventories. The index indicates that the out of 85 economic indicators 40 economic indicators deteriorated as compared to the month of May. The Chicago Fed said 45 indicators have shown positive contributions.

The contribution of the economic indicators including employment and unemployment faltered to 0.09 in June which was 0.15 in the previous month. The total number of jobs increased by 850,000 jobs in June. The unemployment rate in the last month was up to 5.9% balancing the labor market of the U.S.

The production related indicators contributed by 0.01 which had previously contributed 0.26 in the month of May. However, the industrial indicators contributed to 0.4% in June. Meanwhile, the manufacturing production reduced by 0.1%. The contribution of other economic indicators like orders, total sales, and investor category rose by 0.06 in the month of June.The negative economic growth rate comes as the nation is grappled with the surging delta variant infected covid-19 cases.