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Chicago Fed National Activity Index improved in December
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Led by gains in employment- and production-related indicators, the Chicago Fed National Activity Index increased to +0.03 in December from –0.40 in November. December marked the first time in five months that the index had a positive reading. Three of the four broad categories of indicators that make up the index made positive contributions in December, while the consumption and housing category continued to make a large negative contribution.
The index’s three-month moving average, CFNAI-MA3, increased to –0.22 in December from –0.36 in November. The CFNAI-MA3 suggests that despite the improvement in December, growth in national economic activity remained below its historical trend for the seventh consecutive month. With regard to inflation, the amount of economic slack reflected in the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.
Production-related indicators made a contribution of +0.26 to the index in December, up from +0.04 in November. Total industrial production rose 0.8 percent in December after increasing 0.3 percent in November. Similarly, manufacturing industrial production rose 0.4 percent
Posted: January 27, 2011 Thursday 08:30 AM