Global| Feb 24 2011Chicago Fed Index Returns To Negative Territory
by:Tom Moeller
|in:Economy in Brief
Summary
The Chicago Fed reported that its National Activity Index (CFNAI) fell last month to -0.16 from an upwardly revised 0.18 in December, initially reported at 0.03. The index remained down sharply since its March peak, though it has [...]
The Chicago Fed reported that its National Activity Index (CFNAI) fell last
month to -0.16 from an upwardly revised 0.18 in December, initially reported at
0.03. The index remained down sharply since its March peak, though it has
recovered lately from its low. The three-month moving average of the index,
which smoothes out some of the series' volatility, improved modestly to -0.10.
An index level at or below -0.70 typically has indicated negative U.S. economic growth. A zero value of the CFNAI suggests that the economy is expanding at its historical trend rate of growth. During the last ten years it's had an 77% correlation with the quarterly growth in real GDP.
The CFNAI is a weighted average of 85 indicators of economic activity. The Chicago Fed indicated that January's deterioration was due mostly to the production & income numbers. Other series were roughly stable month-to-month. Thirty-nine of the 85 individual indicators made positive contributions to the index in January, while 46 had a negative effect. The Fed also indicated that 39 indicators improved from December to January, while 45 indicators deteriorated. One was unchanged.
The Chicago Federal Reserve figures are available in Haver's SURVEYS database.
| Chicago Federal Reserve Bank | Jan | Dec | Nov | Jan'10 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| CFNAI | -0.16 | 0.18 | -0.33 | 0.05 | -0.12 | -1.56 | -1.85 |
| 3-Month Moving Average | -0.10 | -0.14 | -0.31 | -0.14 | -- | -- | -- |
| Personal Consumption & Housing | -0.38 | -0.43 | -0.40 | -0.40 | -0.38 | -0.42 | -0.28 |
| Employment, Unemployment & Hours | 0.11 | 0.15 | -0.05 | -0.08 | 0.03 | -0.81 | -0.67 |
| Production & Income | 0.05 | 0.45 | 0.07 | 0.45 | 0.19 | -0.21 | -0.61 |
| Sales, Orders & Inventories | 0.06 | 0.02 | 0.04 | -0.05 | 0.04 | -0.11 | -0.29 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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