This article first appeared on Floating Path.
The Chicago Fed’s National Financial Conditions Index was a reading of -0.87 for the week ending November 1. 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 -0.25. This is an increase from the prior week’s reading of -0.28, indicating that financial conditions are looser on average than would be suggested by economic conditions, but less loose relative to economic conditions than the week prior. The ANFCI has tightened for five consecutive weeks.
The risk subindex was a reading of -0.87, indicating that financial conditions were looser than average and unchanged from the week prior.
The credit subindex was a reading of -0.75 last week, indicating that financial conditions were looser than average and unchanged from the week prior.
The leverage subindex was a reading of -0.55 last week, indicating that financial conditions were looser than average and unchanged from the week prior.
The nonfinancial leverage subindex was a reading of -0.63 last week, indicating that nonfinancial leverage was below average and unchanged from the week prior.
