National Financial Conditions Index Stays Loose At -0.94

The Chicago Fed’s National Financial Conditions Index was a reading of -0.94 for the week ending December 13. This is unchanged from the prior week’s reading and suggests that financial conditions are looser than average.

The adjusted NFCI, which isolates a component of financial conditions uncorrelated with economic conditions to provide an update on financial conditions relative to current economic conditions, was a reading of -0.30. This is higher than the prior week’s reading of -0.33, indicating that financial conditions are tighter relative to economic conditions than the week prior, but still looser on average than would be suggested by economic conditions.

NFCI2 600x375 National Financial Conditions Index Stays Loose At  0.94

The risk subindex was a reading of -0.91, indicating that financial conditions were tighter than the prior week’s reading of -0.92 but looser than average.

The credit subindex was a reading of -0.85 last week, indicating that financial conditions were looser than the prior week’s reading of -0.84 but looser than average.

The leverage subindex was a reading of -0.66 last week, indicating that financial conditions were unchanged from the prior week’s reading and looser than average.

NFCI Components1 600x375 National Financial Conditions Index Stays Loose At  0.94

The nonfinancial leverage subindex was a reading of -0.64 last week, indicating that financial conditions were higher than the prior week’s reading of -0.65 but still below average.

NFCI Nonfinancial1 600x375 National Financial Conditions Index Stays Loose At  0.94

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