NEW YORK - The Chicago Fed National Activity Index for April declined to negative 0.45 from a revised positive 0.32 reading in March, while the three-month moving average (CFNAI-MA3) slipped to negative 0.12 in April, from March’s revised positive 0.08, the Federal Reserve Bank of Chicago reported Monday.
In April 2010, the index was positive 0.34, while the CFNAI-MA3 was positive 0.15 in that month.
The March index was originally reported as positive 0.26, while the March CFNAI-MA3 was first reported as positive 0.20.
The negative reading for the CFNAI-MA3 indicates national economic growth was somewhat below its historical trend, and suggests subdued inflationary pressure from economic activity in the coming year, the Chicago Fed said.
The production indicators contributed negative 0.16 in the month (compared to a contribution of positive 0.31 in the previous month), while employment-related indicators contributed positive 0.06 in the month, after providing a positive 0.24 in March, the Fed said.
Consumption and housing-related data contributed negative 0.39 in the month, after contributing negative 0.39 the prior month, while sales, orders and inventories contributed positive 0.04 in the month, after a positive 0.15 contribution in March.
The index is a weighted average of 85 indicators of national economic activity. A zero value for the index indicates that the national economy is expanding at its historical trend rate of growth; negative values are associated with below-trend growth while positive values indicate above-trend growth.
Overall, 37 of the 85 indicators made positive contributions to the index in the month and 48 made negative contributions. While 28 indicators were better than the previous month, 12 of these still made negative contributions to the index. Also, 57 indicators deteriorated from March to April.
The index was constructed using data available by May 19, with data for 52 of the 85 indicators having been published by then. The Fed said it used estimates for the missing data.
