Weekly Economic Update: August 28 – September 1, 2017

August 28, 2017

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CHART OF THE WEEK

United States Projected to Become Net Exporter of Natural Gas

The Energy Information Agency (EIA) projects that the United States will become a net exporter of natural gas as of 2017. In 2009, the United States surpassed Russia to become the world’s largest producer of natural gas. U.S. production is currently 72.5 billion cubic feet per day (Bcf/d). In addition, the capacity to liquefy natural gas for shipment by tanker (as opposed to pipelines) is projected to increase from 1.4 Bcf/d to 9.5 Bcf/d by 2019’s end. Natural gas emits 30% less CO2 than oil and 45% less than coal (see p. 3 of link).

LAST WEEK

News & Commentary Weekly Highlights

Breaking Energy: LNG Exports, Growing U.S. Energy Opportunity

Wall Street Journal: Janet Yellen’s Future at the Fed Unresolved Heading Into Jackson Hole

Economics21: Treasury Should Not Bail Out Fannie’s and Freddie’s Subordinated Debt

The Clearing House: FOMC Go Home

Top Economic Indicator Highlights

Chicago Fed National Activity Index (CFNAI) (July, preliminary)

The CFNAI is an index generated as a weighted average from 85 different economic indicators measuring economic growth. Values above zero indicate above-average economic growth.

Category	July	June	May
CFNAI (3-month moving average)	-0.05	0.09	0.00

Chicago Fed National Activity Index

Noteworthy: Between February 2015 and November 2016 the 3-month moving average of CFNAI was negative, indicating below average economic growth. In six of the last eight months the index’s 3-month moving average has been positive or zero.