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Chicago Fed National Activity Index
Chicago Fed National Activity Index definition - finance
A monthly economic report prepared by
the Chicago Federal Reserve Bank that tracks economic activity in the 7th
district, which is comprised of Indiana, Iowa, Illinois, Michigan, and
Wisconsin. The Chicago Fed National Activity Index is a coincident indicator of
broad economic activity that is a weighted average of 85 indicators based on
economic data covering production and income, employment, personal consumption,
housing, manufacturing, trade sales, inventories, and orders. It is useful in
tracking economic growth and identifying potential inflation. An index value of
0 indicates that the economy is growing at its long-run potential; a value over
0 indicates that the economy is growing above its potential. A negative value
indicates that the economy is growing below potential. The data has a lag of
about one month. It is a relatively new report that has not yet gained a following
in the financial markets.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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