The Chicago Federal National Activity Index (CFNAI) reported today that February’s index was down compared to January’s results. You can read the press release and learn more about this indicator at the Chicago Fed website.
February’s results indicate that the economic recovery has not taken root yet and we must be wary with our personal finances. While we all want the economy to recover soon, wishing won’t make it real. The CFNAI shows that half of the 85 indicators it uses were up in February and half were down. Here’s the key: most of the weakness in the index continued to stem from the consumption and housing category. When these two indicators turn consistently positive, we’re out of the downturn and are headed up. Until then, the economy is marching sideways.