Chicago Fed National Activity Index

National Economic Activity Picked up in September

by Glenn Busch October 25, 2011
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Yesterday the Chicago Fed released their National Activity Index for the month of September. While still a negative number the index improved from a reading of -0.59 in August to a reading of -0.22. A negative number does not mean contraction. Zero is measured as the normal growth rate for the U.S. economy. Any number above zero means the economy is growing at an above-average rate and any number below zero means an economy is growing at below-average rates.

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Below Average Economic Growth According to Chicago Fed National Activity Index

by Glenn Busch September 26, 2011
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While the August number by itself is weak, the key thing to look at in this report is the 3-month moving average. A zero value for the 3-month moving average equals an economy growing at or near its average rate. Numbers above zero indicate an economy growing above trend and numbers below Zero indicate an economy growing below trend.

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Chicago Fed National Activity Index Improves but Growth is Below Average

by Glenn Busch August 22, 2011
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The activity index is a weighted average of 85 national economic indicators. A zero value or higher indicates an expanding economy and a negative value means the economy is growing at a below-average rate.Although the index improved for the month of July, it still shows a U.S. economy growing well below average.

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Chicago Fed: Below Average Economic Growth

by Glenn Busch June 23, 2011
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Another economic report showing an industrial slow-down but not another recession. A zero value for the 3 month moving average Chicago Fed National Activity Index (CFNAI-MA3) means the eocnomy is expanding and a positive number means above-average growth. A negative number does not mean an economic contraction, it means below-average growth.

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