Global| Apr 21 2014U.S. Chicago Fed National Activity Index Continues To Improve
by:Tom Moeller
|in:Economy in Brief
Summary
The Chicago Federal Reserve reported that its National Activity Index (CFNAI) rose to 0.20 last month following its February recovery to 0.53, revised from 0.14. The latest reading remained down, nevertheless, versus November's high [...]
The Chicago Federal Reserve reported that its National Activity Index
(CFNAI) rose to 0.20 last month following its February recovery to 0.53,
revised from 0.14. The latest reading remained down, nevertheless, versus
November's high of 0.66. Despite its recent improvement, the three-month
moving average was a neural 0.00. During the last ten years, there has
been an 80% correlation between the Chicago Fed Index and the q/q change
in real GDP.
The Production & Income reading retraced some of the prior month's recovery with a decline to 0.21 from 0.54. Also down was the Sales, Orders & Inventories series to -0.02 from 0.08. Offsetting these declines was modest improvement in the Personal Consumption & Housing reading to -0.13 from -0.17. Also up was the Employment, Unemployment & Hours index which increased to 0.14 from 0.07. The Chicago Fed reported that during March, 51 of the 85 individual indicators made positive contributions to the overall index while 34 made negative contributions.
The CFNAI is a weighted average of 85 indicators of national economic activity. It is constructed to have an average value of zero and a standard deviation of one. Since economic activity tends toward trend growth rate over time, a positive index reading corresponds to growth above trend and a negative index reading corresponds to growth below trend.
The Chicago Federal Reserve figures are available in Haver's SURVEYS database.
| Chicago Federal Reserve Bank | Mar | Feb | Jan | Mar'13 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| CFNAI | 0.20 | 0.53 | -0.74 | -0.26 | -0.01 | -0.05 | -0.07 |
| 3-Month Moving Average | 0.00 | -0.14 | -0.09 | -0.09 | -- | -- | -- |
| Personal Consumption & Housing | -0.13 | -0.17 | -0.21 | -0.14 | -0.15 | -0.21 | -0.29 |
| Employment, Unemployment & Hours | 0.14 | 0.07 | 0.11 | 0.03 | 0.09 | 0.10 | 0.13 |
| Production & Income | 0.21 | 0.54 | -0.40 | 0.08 | 0.02 | 0.04 | 0.05 |
| Sales, Orders & Inventories | -0.02 | 0.08 | -0.23 | -0.22 | 0.03 | -0.01 | 0.03 |
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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