Chicago Fed's National Index Falls Short in January

The decline in U.S. industrial production last month sent a closely-watched economic barometer back into negative territory.

The Federal Reserve Bank of Chicago said Monday that its National Activity Index dipped to -0.32 in January from 0.25 in December, well below the 0.02 consensus among analysts surveyed by Dow Jones Newswires.

The more representative three-month moving average climbed for the third month, rising to 0.30 in January from 0.23 in December.

A positive reading for the activity index, a compendium of available and forecast economic data as of Feb. 21, points to below-trend growth.

The Chicago Fed revised the headline December reading up to 0.25 from 0.02.

Production-related indicators fell the most in January, with their contribution declining to -0.17 from 0.35, with manufacturing decreasing 0.4% after having risen 1.1% in December.

Employment-related indicators remained in positive territory at 0.02, down from 0.10 as the unemployment rate edged up to 7.9% from 7.8% in December.

Consumption and housing decreased to -0.20 from -0.13 due in part to a drop in housing starts even as housing permits ticked up.

The only category to advance was sales, orders and inventories, which rose to 0.03 from -0.07.

Write to Ben Kesling at benjamin.kesling@dowjones.com

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