The Chicago Fed National Activity Index (CFNAI) rebounded to +0.43 in June from -0.45 in May, pointing to a rebound in U.S. economic growth in June, the Chicago Federal Reserve Bank announced on Monday.
The CFNAI is a weighted average of 85 existing monthly indicators of national economic activity. A positive index reading corresponds to growth above trend and a negative index reading indicates growth below trend.
Forty-five of the individual indicators made positive contributions to the CFNAI in June, while 40 made negative contributions, according to the Chicago Fed.
Among them, production-related indicators contributed +0.36 to the CFNAI in June, up from -0.56 in May. Manufacturing industrial production increased 0.8 percent in June after declining 1.0 percent in May. The sales, orders, and inventories category made a contribution of +0.06 to the CFNAI in June, up slightly from +0.03 in May.
Employment-related indicators contributed +0.08 to the CFNAI in June, down slightly from +0.11 in May. Non-farm payrolls increased by 213,000 in June after rising by 244,000 in May. The contribution of the personal consumption and housing category to the CFNAI ticked down to -0.06 in June from -0.04 in May. Housing starts decreased to 1,173,000 annualized units in June from 1,337,000 in May, and housing permits moved down to 1,273,000 annualized units in June from 1,301,000 in the previous month.
Meanwhile, the index's three-month moving average, CFNAI-MA3, edged up to +0.16 in June from +0.10 in May.
The CFNAI is a weighted average of 85 existing monthly indicators of national economic activity. A positive index reading corresponds to growth above trend and a negative index reading indicates growth below trend.
Forty-five of the individual indicators made positive contributions to the CFNAI in June, while 40 made negative contributions, according to the Chicago Fed.
Among them, production-related indicators contributed +0.36 to the CFNAI in June, up from -0.56 in May. Manufacturing industrial production increased 0.8 percent in June after declining 1.0 percent in May. The sales, orders, and inventories category made a contribution of +0.06 to the CFNAI in June, up slightly from +0.03 in May.
Employment-related indicators contributed +0.08 to the CFNAI in June, down slightly from +0.11 in May. Non-farm payrolls increased by 213,000 in June after rising by 244,000 in May. The contribution of the personal consumption and housing category to the CFNAI ticked down to -0.06 in June from -0.04 in May. Housing starts decreased to 1,173,000 annualized units in June from 1,337,000 in May, and housing permits moved down to 1,273,000 annualized units in June from 1,301,000 in the previous month.
Meanwhile, the index's three-month moving average, CFNAI-MA3, edged up to +0.16 in June from +0.10 in May.
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