The Chicago Fed National Activity Index (CFNAI) increased to –1.06 in May from a downward revised value of –1.23 in April. Continued contraction in industrial production and manufacturing employment combined to keep the CFNAI below –1.00 for the second consecutive month. The three-month moving average index, CFNAI-MA3, was –1.04 in May, a further deterioration from an unchanged –0.96 in April. May marked the eleventh consecutive month that the CFNAI-MA3 was below zero, an indication of below-trend growth in the national economy and a sign of easing pressures on future inflation.