The Chicago Fed National Activity Index for July improved to zero, its historical average, from a June reading of negative 0.70, the Federal Reserve Bank of Chicago reported Monday. The headline index for June was revised upward from an initial reading of negative 0.63.
The three-month moving average slipped to negative 0.17 in July, from June’s revised reading of negative 0.12, which was initially reported as negative 0.05. In July 2009, the headline index was negative 0.07 and the moving average was negative 1.32.
Negative readings for the moving average indicate national economic growth is below its historical trend and suggest subdued inflationary pressure from economic activity in the coming year, according to the Chicago Fed.