by Calculated Risk on 7/25/2011 08:30:00 AM
Monday, July 25, 2011
Chicago Fed: Economic growth below average in June
No surprise (this is a composite index) ... from the Chicago Fed: Index shows economic growth again below average in June
The Chicago Fed National Activity Index increased to –0.46 in June from –0.55 in May; however, the index remained negative for the third consecutive month. Three of the four broad categories of indicators that make up the index improved in June, but only one made a positive contribution to the index.The index’s three-month moving average, CFNAI-MA3, declined to –0.60 in June from –0.31 in May, remaining negative for a third consecutive month and reaching its lowest level since October 2009.
This graph shows the Chicago Fed National Activity Index (three month moving average) since 1967.
![Chicago Fed National Activity Index](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnLzqfcOkwIEL-IWQd_lXegM1bsxPtup3x1vxGG-B2nxKEP5jkfRy9H3Ov28BCKJaL0blThJM6FQseqySpPzy2pAGnySz2ClQGMKDiXfka316JCPOFTJ2iyNfTA4ZFVT2tUZZ_wA/s320/ChicagoFedNAIJune2011.jpg)
According to the Chicago Fed:
A zero value for the index indicates that the national economy is expanding at its historical trend rate of growth; negative values indicate below-average growth; and positive values indicate above-average growth.This index suggests the economy was still growing in June, but below trend.