The latest version of the Chicago Federal Reserve National Activity Index (CFNAI) stated that economic activity improved in June and the index rose from a weak level of -0.30 in the previous month to 0.13, while the three-month moving average rose to 0.06.
The CFNAI is a weighted average of 85 indicators of national economic activity, which are grouped into four overall categories: “Production and Income”, “Employment, Unemployment and Income”, “Personal Consumption and Housing” and “Sales, Orders and Inventories”.
The Chicago Fed views a zero for the overall index as an indication that the economy is growing at its historical trend rate, while a negative value indicates below-average growth.
A value at or below -0.70 for the three-month moving average of the National Activity Index (CFNAI-MA3) indicates that the economy has just started or is in recession.
Note: We are not the author of this content. For the Authentic and complete version,
Check its Original Source