Chicago Fed National Activity Index Reaches Multiyear High
The Chicago Fed released its National Activity Index for the month of November with a reading of +0.73, up from +0.31 in October.
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The Chicago Federal Reserve released its National Activity Index (CFNAI) for the month of November with a reading of +0.73, up from +0.31 in October. The index is designed to gauge overall economic activity and related inflationary pressure.
The three-month moving average rose to +0.48 in November, up from +0.09 in October, which is the highest level since May of 2010. The economic growth reflected in this level of the three-month moving average suggests modest inflationary pressure from economic activity over the coming year.
The CFNAI is drawn from a weighted average of 85 economic indicators from four broad categories of data: production and income; employment, unemployment and hours; personal consumption and housing; and sales, orders and inventories. Each of these data sets measures some aspect of overall macroeconomic activity. The index derived from this provides a single, summary measure of a factor common to these national economic data.
Out of the four broad categories, two had a positive contribution from October and one had a negative contribution.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
