If you haven’t yet, now is a good time to read the introduction to the Chicago Fed’s National Financial Conditions index that I posted last week.

The Chicago Fed’s National Financial Conditions index was a reading of -0.83 for the week ending October 11. This is a decrease from the prior week’s reading of -0.82, and suggests that financial conditions are looser than average and looser than the week prior.

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 -0.34 last week. This is an increase from the prior week’s reading of -0.38, indicating that financial conditions are looser on average than would be suggested by economic conditions, but tighter than the week prior.

Chicago Fed NFCI

The risk subindex was a reading of -0.82, indicating that financial conditions were looser than average and looser than the -0.81 reading the week prior.

The credit subindex was a reading of -0.72 last week, indicating that financial conditions were looser than average and unchanged from the week prior.

The leverage subindex was a reading of -0.53 last week, indicating that financial conditions were looser than average but tighter than the -0.54 reading the week prior.

NFCI

The nonfinancial leverage subindex was a reading of -0.65 last week, indicating that nonfinancial leverage was below average but higher than the -0.66 reading the week prior.

FED NFCI

Via Floating Path