The Chicago Fed National Activity Index for December climbed to negative 0.22 from a revised negative 0.36 reading in November, while the three-month moving average (CFNAI-MA3) dipped to negative 0.24 from an upwardly revised negative 0.19 in October, the Federal Reserve Bank of Chicago reported Friday.
In December 2014, the index was positive 0.13, while the CFNAI-MA3 was positive 0.40 in that month.
The November index was originally reported as negative 0.30, while the CFNAI-MA3 was first reported as negative 0.20.
The reading for the CFNAI-MA3 indicates national economic growth was somewhat below its historical trend, and suggests limited inflationary pressure from economic activity in the coming year, the Chicago Fed said.
The CFNAI diffusion index, also a three-month moving average, narrowed to negative 0.12 from a revised negative 0.13 reading the month before, first reported as negative 0.20. A year ago, the diffusion index was positive 0.33.
The production indicators subtracted 0.26 from CFNAI in the month (compared to a subtraction of 0.40 in the previous month), while employment-related indicators added 0.12 in the month, after a 0.12 contribution in November, the Fed said.
Personal consumption and housing-related data subtracted 0.07 in the month, after subtracting 0.05 the prior month, while sales, orders and inventories subtracted 0.02 in the month after taking 0.03 from the index in November.
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.
The index was constructed using data available by Jan. 20, with data for 49 of the 85 indicators having been published by then. The Fed said it used estimates for the missing data.
Overall, 35 of the 85 indicators made positive contributions to the index in the month and 50 made negative contributions. While 51 indicators were better than the previous month, 66 of these still made negative contributions to the index. Also, 32 deteriorated from November to December and two were flat.
