National Economic Activity Unexpectedly Declined In December; Chicago Fed Index Shows

Tyler Durden's Photo
by Tyler Durden
Thursday, Jan 25, 2024 - 02:02 PM

Against expectations of a small rise from 0.03 to 0.06, The Chicago Fed's National Activity Index (which draws on 85 economic indicators) tumbled to -0.15 in December. 2023 ends with 8 of the 12 months in negative territory...

Source: Bloomberg

Under the hood, 48 of the 85 inputs made a negative contribution with all major subcategories weaker MoM and only personal consumption barely above zero...

  • Production and Income -0.06

  • Employment -0.06

  • Personal Consumption +0.01

  • Sales & Orders -0.04

CFNAI's Diffusion Index remains significantly weak...

This indicates below-trend-growth in the national economy and a sign of easing pressures on future inflation