The latest release of the Chicago Federal Reserve National Activity Index (CFNAI) indicated that the national economic improved in January with the index rising to a level of 0.28 from a level of -0.34 a month earlier while the three month moving average improved to a level of -0.15.
January's improvements came as a direct result of improvements of the "Production and Income" component of the CFNAI with the latest reading rising sharply from -0.38 to 0.27 on the month.
The CFNAI is a weighted average of 85 indicators of national economic activity collected into four overall categories of “production and income”, “employment, unemployment and income”, “personal consumption and housing” and “sales, orders and inventories”.
The Chicago Fed regards a value of zero for the total index as indicating that the national economy is expanding 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 national economy has either just entered or continues in recession.