CHICAGO, Nov. 27 (UPI) -- The Chicago Federal Reserve said its national economic index dropped into negative territory in October, sliding from 0.18 to minus 0.18.
The index is a weighted average of 85 monthly national economic indicators that remains fixed at an average of zero with a standard deviation of one.
With the index at zero, economic activity is neither growing, nor contracting. Positive numbers indicate growth, while negative numbers signal a contraction.
Three of the four broad categories that make up the Fed National Activity Index declined in the month. Sales, orders and inventories made a positive contribution, while employment-related measures, consumption and housing data, and production and income indicators subtracted from the headline index.
Despite the drop in the headline index, the three-month rolling average for the FNAI index rose to 0.06 in October from minus 0.02 in September, the first positive reading in eight months, the Fed said.
The indexes that go into the FNAI were split with 41 of the 85 indicators making positive contributions and 44 making negative contributions.
On the other hand, 44 indicators improved, 40 deteriorated and one was unchanged in the month, the Fed said.
