What is Chicago Fed National Activity Index(CFNAI)

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What is it?

• The Chicago Fed National Activity Index (CFNAI) is a monthly index that measures economic activity in the United States.
• The CFNAI is a composite index that is constructed from 85 different economic indicators, including employment, industrial production, housing starts, and personal income.
• These indicators are weighted and combined to create a single index value, which ranges from -1.00 to +1.00.
• A value above zero indicates that economic activity is above trend, while a value below zero indicates that economic activity is below trend.

Who Reports It?

It is produced by the Federal Reserve Bank of Chicago and is designed to provide a broad overview of the economic conditions in the country.

How it is Generated?

• The Chicago Fed National Activity Index (CFNAI) is calculated by combining 85 different economic indicators into a single index value.
• The indicators used in the CFNAI include measures of employment, production, income, sales, and orders, as well as other data on housing, personal consumption, and business activity.
• To calculate the CFNAI, the economic indicators are first divided…