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Chicago Fed National Activity Index increased in July
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Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) increased to –0.13 in July from –0.34 in June. Three of the four broad categories of indicators that make up the index improved from June, but only the production and income category made a positive contribution in July.
The index’s three-month moving average, CFNAI-MA3, decreased slightly from –0.18 in June to –0.21 in July—its fifth consecutive reading below zero. July’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend. The economic growth reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.
The CFNAI Diffusion Index also moved lower in July, ticking down to –0.05 from –0.02 in June. Forty-nine of the 85 individual indicators made positive contributions to the CFNAI in July, while 36 made negative contributions. Fifty-six indicators improved from June to July, while 28 indicators deteriorated and one was unchanged. Of the indicators that improved, 15 made negative contributions.
Posted: August 20, 2012 Monday 08:30 AM