What is the Chicago Fed National Activity Index (CFNAI)?
The Chicago Fed National Activity Index is a monthly index designed to gauge overall economic activity and related inflationary pressure. 85 monthly indicators of economic activity are analyzed by the CFNAI. These indicators fall under employment, production, income, personal consumption, housing, sales, orders, and inventories categories. The index has an average value of zero, which means that the economy is growing at its long-run potential. Positive readings over zero highlights economic growth above trend, where readings below zero show growth below trend.
Why is the Chicago Fed National Activity Index valuable?
When the Chicago Fed National Activity Index was created it was used to highlight the common factor between various other indexes that measure macroeconomic activity. This could be used when predicting inflation. Today, it continues to be a strong gauge for current economic activity and inflation in the United States.
What should you do?
If you’re looking to understand inflation trends and economic growth, the Chicago Fed National Activity Index is the place to start. Majestic’s CORE Report follows the Chicago Fed National Activity Index; along with other indicators every week to see where the market stands.