Chicago Fed: National economic activity slowed in January
The Chicago Fed reported that its National Activity Index showed economic growth slowed in January due to declines in production-related areas. However, the agency reported that the national economy has been growing over the past several months.
The latest release of the Chicago Federal Reserve National Activity Index (CFNAI) indicated that the national economic activity worsened in January with the index falling to a very weak level of -0.39 from a level of -0.03 in December while the three month moving average declined to a level of -0.10.
The CFNAI is a weighted average of 85 indicators of national economic activity collected into four overall categories of “production and income”, “employment, unemployment and income”, “personal consumption and housing” and “sales, orders and inventories”.
The Chicago Fed regards a value of zero for the total index as indicating that the national economy is expanding at its historical trend rate while a negative value indicates below average growth.
A value at or below -0.70 for the three month moving average of the national activity index (CFNAI-MA3) indicates that the national economy has either just entered or continues in recession.
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