In March, the U.S. economy experienced a positive trend in economic activity, thanks to a strong job market and rising demand. According to a monthly index published on Monday, the Chicago Fed National Activity Index increased from an upwardly revised 0.09 in February to 0.15, indicating that employment-related indicators and sales, orders, and inventories made better contributions than before.
However, two of the four categories that make up the index saw a decrease compared to the previous month. Production made a less positive contribution, while personal consumption and housing turned negative. Despite this, the three-month moving average of the index increased from minus 0.28 in February to minus 19, showing a positive trend across economic activity.
Furthermore, the CFNAI diffusion index also improved as it rose from minus 0.16 in February to minus 0.6 in March. Historically, periods of economic expansion have been associated with values of the CFNAI Diffusion Index above minus 0.35.
Overall, these data suggest a promising outlook for the U.S economy in the coming months.
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