Chicago Fed National Activity Index Shows Higher Than Average Economic Growth

The economy grew at a slightly higher than average pace in April, at plus 0.10 for the national activity index. Production was the strongest component in the month and reflected solid strength in manufacturing and specifically for vehicles. The consumer & housing component got a lift from strength in retail sales and also gains for both housing starts and housing permits. Employment remained in slightly negative ground as did sales, orders and inventories.

Another weakness is the 3-month average, down 0.04 points to minus 0.22 to indicate a still negative trend. But April was definitely a good month for the economy, justifying the FOMC's outlook for improvement in second-quarter growth following an unusually soft first quarter.