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National Activity Index points to a pickup in economic growth: Chicago Fed

CHICAGO
2018-01-23 10:36

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The Chicago Fed National Activity Index (CFNAI) moved up to +0.27 in December from +0.11 in November 2017, due to improvements in production-related indicators, the Federal Reserve Bank of Chicago reported on Monday.

The index is a weighted average of 85 indicators of growth in U.S. national economic activity drawn from four broad categories of data: production and income; employment; personal consumption and housing; sales, orders, and inventories.

The contribution from production-related indicators to the CFNAI rose to +0.25 in December from -0.02 in November. Total industrial production increased 0.9 percent in December after moving down 0.1 percent in November.

The sales, orders, and inventories category made a contribution of +0.08 to the CFNAI in December, up slightly from +0.04 in November, said Chicago Fed.

Employment-related indicators contributed +0.01 to the CFNAI in December, down from +0.12 in November. Nonfarm payrolls increased by 148,000 in December after increasing by 252,000 in November.

The contribution of the personal consumption and housing category to the CFNAI edged down to -0.07 in December from -0.03 in November. Housing starts decreased to 1,192,000 annualized units in December from 1,299,000 in November.

The CFNAI Diffusion Index, which is also a three-month moving average, edged down to +0.23 in December from +0.26 in November, according to Chicago Fed.
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