Chicago Fed: Pickup in Economic Growth in July
The headline for this morning's release of the Chicago Fed's National Activity Index (CFNAI) reads "Index points to a pickup in economic growth in July".
The Chicago Fed National Activity Index (CFNAI) rose to +0.12 in July from -0.33 in June. Two of the four broad categories of indicators used to construct the index increased from June. Two of the four categories made positive contributions in July. For a more detailed perspective on long-term economic trends, see our latest Understanding the CFNAI Components.
Background on the Chicago Fed National Activity Index (CFNAI)
The Chicago Fed's National Activity Index is a monthly indicator designed to gauge overall economic activity and related inflationary pressure. It is a composite of 85 monthly indicators as explained in this background PDF file on the Chicago Fed's website. The index is constructed so a zero value for the index indicates that the national economy is expanding at its historical trend (average) rate of growth. Negative values indicate below-average growth, and positive values indicate above-average growth.