Chicago Fed National Activity Index Increases in January - Modern Distribution Management

Log In

Chicago Fed National Activity Index Increases in January

The indexs three-month moving average moved up to +0.13.
Author
Date

Led by improvements in production-related indicators, the Chicago Fed National Activity Index edged up to +0.13 in January from –0.07 in December. Three of the four broad categories of indicators that make up the index increased from December, and only one of the four categories made a negative contribution to the index in January.

The index’s three-month moving average, CFNAI-MA3, ticked down to +0.33 in January from +0.34 in December. January’s CFNAI-MA3 suggests that growth in national economic activity was above its historical trend. The economic growth reflected in this level of the CFNAI-MA3 suggests modest inflationary pressure from economic activity over the coming year.

The CFNAI Diffusion Index, which is also a three-month moving average, increased slightly to +0.20 in January from +0.16 in December. Forty-eight of the 85 individual indicators made positive contributions to the CFNAI in January, while 37 made negative contributions. Forty-three indicators improved from December to January, while 42 indicators deteriorated. Of the indicators that improved, 14 made negative contributions.

Production-related indicators made a contribution of +0.02 to the CFNAI in January, up from –0.22 in December. Industrial production increased 0.2 percent in January after declining 0.3 percent in the previous month, and manufacturing production increased 0.2 percent in January after being unchanged in December. The contribution of the sales, orders, and inventories category to the CFNAI increased to +0.03 in January from a neutral reading in December.

Employment-related indicators contributed +0.18 to the CFNAI in January, down from +0.28 in December. Nonfarm payrolls increased by 257,000 in January, after rising by 329,000 in the previous month; and the unemployment rate ticked up to 5.7 percent in January from 5.6 percent in December.

The contribution of the consumption and housing category to the CFNAI increased to –0.1 in January from –0.13 in December. Consumption indicators improved, on balance, pushing the category higher. However, housing permits decreased to 1,053,000 annualized units in January from 1,060,000 in December, and housing starts decreased to 1,065,000 annualized units in January from 1,087,000 in the previous month.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.