Chicago index hits lowest level in years

CHICAGO -- An economic activity index calculated by the Federal Reserve Bank of Chicago showed its lowest level in more than four years in December, dragged down by a sharp contraction in employment-related indicators, the bank said Tuesday. The three-month moving average of the Chicago Fed's national activity index was negative 0.67, as the single-month reading for December fell to negative 0.91 from negative 0.29 in November. The three-month average was below zero for every month in 2007, indicating below-average economic growth throughout the year.