The Chicago Fed National Activity Index for December plunged to negative 0.05 from a revised 0.92 reading in November, while the three-month moving average (CFNAI-MA3) slipped to 0.39 from a revised 0.54 in November, the Federal Reserve Bank of Chicago reported Friday.
In December 2013, the index was negative 0.18, while the CFNAI-MA3 was 0.20 in that month.
The November index was originally reported as 0.73, while the CFNAI-MA3 was first reported as 0.48.
The reading for the CFNAI-MA3 indicates national economic growth was above its historical trend, and suggests modest inflationary pressure from economic activity in the coming year, the Chicago Fed said.
The CFNAI diffusion index, also a three-month moving average, fell to 0.25 from an unrevised 0.37 the month before. A year ago, the diffusion index was 0.23.
The production indicators subtracted 0.12 from CFNAI in the month (compared to a contribution of 0.71 in the previous month), while employment-related indicators contributed 0.16 in the month, after a 0.21 contribution in November, the Fed said.
Consumption and housing-related data subtracted 0.12 in the month, after subtracting 0.03 the prior month, while sales, orders and inventories added 0.03 in the month, after adding 0.03 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. 21, with data for 49 of the 85 indicators having been published by then. The Fed said it used estimates for the missing data.
Overall, 40 of the 85 indicators made positive contributions to the index in the month and 45 made negative contributions. While 33 indicators were better than the previous month, 14 of these still made negative contributions to the index. Also, 52 deteriorated from November to December.
