Chicago Fed National Activity Index indicates slight growth in US economy

Chicago : The Chicago Fed National Activity Index (CFNAI) rose to +0.24 in October from +0.14 in September, pointing to a slight increase in US economic growth thanks to employment strength.

The Federal Reserve Bank of Chicago reported on Monday that three of the four indicator categories that make up the index contributed positively to the index in October, but only one category, the employment-related indicators, increased from September, Xinhua news agency reported.

The contribution from employment-related indicators to the CFNAI moved up from +0.05 in September to +0.19 in October, as total non-farm payrolls increased by 250,000 in October after rising by 118,000 in the previous month.

Production-related indicators contributed +0.06 in October, down from +0.09 in September. Industrial production edged up 0.1 percent in October after increasing 0.2 percent in September.

The contribution of the personal consumption and housing category to the CFNAI ticked down to -0.05 in October from -0.04 in September. On balance, housing indicators weakened slightly from September, pushing down the category's overall contribution in October.

The contribution from the sales, orders, and inventories category to the CFNAI was unchanged at +0.04 in October.

The CFNAI is a monthly index designed to gauge overall economic activity and related inflationary pressure.

Meanwhile, the CFNAI Diffusion Index, a three-month moving average which provides a more consistent picture of national economic growth, increased to +0.32 in October from +0.24 in September.