By Dave Sebastian

The Chicago Fed National Activity Index, a measure of economic activity in the U.S., inched higher in January, signaling growth.

The index was -0.25 for January, compared with a -0.51 reading in the prior month, according to the Federal Reserve Bank of Chicago. When a reading is above -0.35, it has in the past meant the economy is expanding.

Of the four broad categories the index is made up of, three negatively contributed. All four categories increased from December.

Eighty-five indicators make up the index, and of those, 49 negatively contributed and 36 positively contributed, the Chicago Fed said.

A total of 27 of the 85 indicators deteriorated from the prior month, while two were unchanged and 56 of those contributed positively to the index. Thirty of the indicators that improved made negative contributions, the Chicago Fed said.

The CFNAI-MA3, which the Chicago Fed says can show a more consistent view of economic growth, was -0.09. The three-month moving average was up from -0.23 the previous month.

The Chicago Fed said the CFNAI Diffusion Index ticked up to -0.16 from -0.25 in December. That three-month moving average shows how much a change in the monthly index spans across its more than 80 indicators, the Chicago Fed said.

A CFNAI-MA3 reading of more than -0.70 and a CFNAI Diffusion Index reading of more than -0.35 have historically indicated economic expansion, the Chicago Fed said.

Production-related indicators contributed -0.23 in January, up from -0.34 in December. Industrial production decreased 0.3% in January after decreasing 0.4% in December. The sales, orders and inventories category rose to -0.02 in January from -0.06 in December.

Employment-related indicators contributed -0.03 in January, up from -0.12 in the previous month. The personal-consumption and housing category edged up to 0.03 in January from flat in December.

Write to Dave Sebastian at dave.sebastian@wsj.com

(END) Dow Jones Newswires

February 24, 2020 09:06 ET (14:06 GMT)