US economic activity picked up in July, Chicago Fed says

US economic activity accelerated last month as indicators of production and personal consumption improved, the Chicago Federal Reserve (Fed) reported.

The Fed’s national activity index rose to 0.12 in July from -0.33 in June. The figure, which spans four broad categories, indicates activity is expanding at its fastest pace since January.

Although two of the four categories advanced in July, employment and sales suffered slight setbacks.

The index’s three-month moving average, which the US central bank says provides a more consistent picture of national economic growth, improved to -0.13 from -0.15. Three-month average readings above -0.70 have historically been associated with economic expansion.

Susan Collins, president of the Boston Fed, said yesterday that the central bank would be in a situation where it does not need to raise rates again; however, she is keeping the option open to take further action.