For the first time in a year, the Chicago Fed National Activity Index (CFNAI)—a broad measure of the U.S. economy—posted a positive reading for the second month in a row. Nonetheless, the pace slowed, with CFNAI slipping to +0.22 for January from December’s +0.54. Meanwhile, the three-month moving average (CFNAI-MA3) rose slightly to +0.14 last month, up from +0.06 in December, which the Chicago Fed advises is a sign “that growth in national economic activity was slightly above its historical trend.”
Daily Archives: February 21, 2012
Will Rising Gasoline Prices Derail The Economic Recovery?
Gasoline prices are on the march once again, reaching an average price of $3.52 a gallon in the U.S. for the week of February 13, according to the Energy Information Administration. Prices have been advancing steadily since mid-December and are now at the highest level since last September. Some analysts predict that we’ll see $4-a-gallon soon as a national average. If so, will the rally in fuel costs threaten the economic recovery?