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Chicago Fed National Activity Index improved in July
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Led by improvements in production-related indicators, the Chicago Fed National Activity Index increased to –0.06 in July from –0.38 in June. Three of the four broad categories of indicators that make up the index improved in July; only the sales, orders, and inventories category deteriorated from June.
The index’s three-month moving average, CFNAI-MA3, increased to –0.29 in July from –0.54 in June. July’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend. Likewise, the economic slack reflected in this level of the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.
Production-related indicators made a contribution of +0.28 to the index in July, up sharply from +0.03 in June. Industrial production increased 0.9 percent in July after rising 0.4 percent in June. Manufacturing production, particularly auto production, rebounded; and manufacturing capacity utilization rose to 75.0 percent in July from 74.6 percent in the previous month.
Posted: August 22, 2011 Monday 08:30 AM