The Chicago Fed national activity index for June narrowed to negative 1.80, from an unrevised negative 2.30 reading in May.

Meanwhile, the three-month moving average — CFNAI-MA3 — improved to negative 2.12 in June, from May’s revised negative 2.65 reading, initially reported as negative 2.67, the Federal Reserve Bank of Chicago reported yesterday.

In June 2008, the index was negative 0.98, while the CFNAI-MA3 was negative 1.07. The negative reading for the CFNAI-MA3 indicates national economic growth was well below its historical trend and suggests little inflationary pressure from economic activity in the coming year.

The production and income category of indicators contributed negative 0.32 to the index compared to a contribution of negative 0.70 in the previous month.  Employment-related indicators contributed negative 0.82 after providing a negative 0.96 in May, the Fed said.

Consumption and housing-related data contributed negative 0.51 in June, after contributing negative 0.53 in May, while sales, orders and inventories contributed negative 0.14 after a negative 0.11 contribution the previous month.

The index is a weighted average of 85 indicators of national economic activity, and is constructed to have an average value of zero.

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