The following is an update of various indicators that are supposed to predict and/or depict economic activity. These indicators have been discussed in previous blog posts:
The January 2024 Chicago Fed National Activity Index (CFNAI) updated as of January 25, 2024:
The CFNAI, with a current reading of -.15:
source: Federal Reserve Bank of Chicago, Chicago Fed National Activity Index [CFNAI], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed January 25, 2024:
https://fred.stlouisfed.org/series/CFNAI
The CFNAI-MA3, with a current reading of -.28:
source: Federal Reserve Bank of Chicago, Chicago Fed National Activity Index: Three Month Moving Average [CFNAIMA3], retrieved from FRED, Federal Reserve Bank of St. Louis; accessed January 25, 2024:
https://fred.stlouisfed.org/series/CFNAIMA3
–
The Aruoba-Diebold-Scotti Business Conditions (ADS) Index
The ADS Index as of January 18, 2024, reflecting data from March 1, 1960 through January 13, 2024, with last value .0438139:
–
The Conference Board Leading Economic Index (LEI), Coincident Economic Index (CEI), and Lagging Economic Index (LAG):
As per the January 22, 2024 Conference Board press release the LEI was 103.1 in December, the CEI was 111.7 in December, and the LAG was 118.4 in December.
An excerpt from the release:
“The US LEI fell slightly in December, continuing to signal underlying weakness in the US economy,” said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board. “Despite the overall decline, six out of ten leading indicators made positive contributions to the LEI in December. Nonetheless, these improvements were more than offset by weak conditions in manufacturing, the high interest-rate environment, and low consumer confidence. As the magnitude of monthly declines has lessened, the LEI’s six-month and twelve-month growth rates have turned upward but remain negative, continuing to signal the risk of recession ahead. Overall, we expect GDP growth to turn negative in Q2 and Q3 of 2024 but begin to recover late in the year.”
Here is a chart of the LEI from the Advisor Perspectives’ Conference Board Leading Economic Index (LEI) update of January 22, 2024:
_________
I post various indicators and indices because I believe they should be carefully monitored. However, as those familiar with this site are aware, I do not necessarily agree with what they depict or imply.
_____
The Special Note summarizes my overall thoughts about our economic situation
SPX at 4890.21 as this post is written