Chicago Fed National Activity Index falls further in November

US economy activity declined in November amid inflationary pressures, according to a survey on Monday.

The Chicago Fed National Activity Index (CFNAI) was -0.30 in November, down from -0.17 in October. Analysts had expected a reading of +0.10.

The drop was led by a fall in the production-related indicators on the CFAI to –0.27 in November from –0.11 in October. Industrial production dropped 0.6% in November, compared to a 0.4% decrease a month earlier. Manufacturing production was unchanged in November, following an increase of 0.3% the previous month.

Employment-related indicators contributed +0.05 to the CFNAI in November, down slightly from +0.08 in October. Non-farm payrolls increased 211,000 in November after rising 298,000 in October, while the unemployment rate was unchanged at 5% last month.

The personal consumption and housing category rose to -0.06 in November from -0.11 in October. Housing starts increased to 1,173,000 annualised units in November from 1,062,000 in October while housing permits grew to 1,289,000 units in November from 1,161,000 a month earlier.