Research >> Economics
Chicago Fed National Activity Index below average in May
|
Led by improvements in production-related indicators, the Chicago Fed National Activity Index increased to –0.37 in May from –0.56 in April. Two of the four broad categories of indicators that make up the index improved from April, but only the production and income category made a positive contribution to the index in May.
Employment-related indicators made a small negative contribution to the index for the second straight month. The index’s three-month moving average, CFNAI-MA3, declined to –0.19 in May from –0.15 in April, remaining negative for a second consecutive month and reaching its lowest level since November 2010. April’s CFNAI-MA3 suggests that growth in national economic activity was below its historical trend. With regard to inflation, the CFNAI-MA3 suggests subdued inflationary pressure from economic activity over the coming year.
Production-related indicators made a contribution of +0.05 to the index in May, up from –0.16 in April. Manufacturing production increased 0.4 percent in May after declining 0.6 percent in April, and manufacturing capacity utilization rose to 74.5 percent in May from 74.2 percent in the previous month. In contrast, the Institute for Supply Management’s Manufacturing Purchasing Managers’ Production Index declined sharply to 54.0 in May from 63.8 in April.
Posted: June 23, 2011 Thursday 08:30 AM