Chicago Fed National Activity Index Disappoints for December

The index came to only 0.02 in December. Bloomberg had a consensus reading of 0.28 and a range from economists of 0.10 to 0.50. The reading in November was 0.27. The three-month average increased marginally but remained in negative territory at -0.11.

Of the four components making up the index, two were positive. Employment stood out at 0.09, versus a prior reading of -0.02. The lagging areas were in consumption and housing and in production.

The Chicago Fed National Activity Index (CFNAI) is a monthly index designed to measure overall economic activity and inflationary pressure. It is a weighted average of 85 existing monthly indicators of national economic activity. A reading above zero is positive and a reading below zero is negative.

The full report can be found here.