FX.co ★ Chicago Fed Activity Index Rises but Stays Below Zero for Third Month

In June, the Chicago Fed National Activity Index (CFNAI) experienced a slight uptick to -0.10, an improvement from the revised figure of -0.16 in May. However, this marks the third consecutive month where the index is below zero, signaling that economic activity continues to lag behind its historical average. Despite improvements in two of the four main categories of indicators from May's figures, all four still exerted a negative influence on the index in June. Specifically, the contribution from production-related indicators improved to -0.01 from -0.06. Likewise, the personal consumption and housing category saw an enhancement, contributing -0.01 compared to the previous -0.10. Conversely, the sales, orders, and inventories category saw a decline, contributing -0.04 after being in positive territory at +0.01 in May. Employment-related indicators also worsened slightly, contributing -0.05, compared to -0.01 in the prior month.