NEW YORK - The Chicago Fed National Activity Index for December increased to positive 0.03 from a revised negative 0.40 reading in November, while the three-month moving average (CFNAI-MA3) climbed to negative 0.22 in December, from November’s revised negative 0.36, the Federal Reserve Bank of Chicago reported Thursday.
Housing and consumption-related indicators once again held back the index.
In December 2009, the index was negative 0.44, while the CFNAI-MA3 was negative 0.41 in that month.
The November index was originally reported as negative 0.46, while the November CFNAI-MA3 was first reported as negative 0.41.
The negative reading for the CFNAI-MA3 indicates national economic growth was below its historical trend, and suggests subdued inflationary pressure from economic activity in the coming year, the Chicago Fed said.
The production indicators contributed positive 0.26 in the month (compared to a contribution of positive 0.04 in the previous month), while employment-related indicators contributed positive 0.15 in the month, after providing a negative 0.11 in November, the Fed said.
Consumption and housing-related data contributed negative 0.43 in the month, after contributing negative 0.39 the prior month, while sales, orders and inventories contributed positive 0.05 in the month, after a positive 0.04 contribution in November.
The index is a weighted average of 85 indicators of national economic activity, and is constructed to have an average value of zero and a standard deviation of one. 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, 45 of the 85 indicators made positive contributions to the index in the month and 40 made negative contributions. While 48 indicators were better than the previous month, 14 of these still made negative contributions to the index. Also, 36 indicators deteriorated from November to December and one was flat.
The index was constructed using data available by January 20, with data for 52 of the 85 indicators having been published by then. The Fed said it used estimates for the missing data.
