Chicago Fed national activity index down in October

NEW YORK Nov 23 (Reuters) - The Federal Reserve Bank of Chicago said on Monday its gauge of the national economy fell further into negative territory in October, in a report that suggested the economic recovery could be in trouble.

The Chicago Fed said its National Activity Index slid to -1.08 from a revised -1.01 in September. September's reading was originally reported at -0.81.

The index's three-month moving average, CFNAI-MA3, decreased to -0.91 in October from -0.67 in September, declining for the first time in 2009, the Chicago Fed said.

"October's CFNAI-MA3 suggests that growth in national economic activity remained below its historical trend," the report said.

"With regard to inflation, the amount of economic slack reflected in the CFNAI-MA3 indicates low inflationary pressure from economic activity over the coming year."

The Chicago Fed said that a move below -0.70 in the index's three-month moving average following a period of economic expansion indicates an increasing likelihood that a recession has begun.

Values of zero in the National Activity Index indicate a national economy expanding at historical trends, negative values indicate below-trend growth and positive values signal growth above trend, the Chicago Fed said.

The 85 economic indicators that comprise the Chicago Fed's index are drawn from four categories: production and income; employment, unemployment and hours; personal consumption and housing; and sales, orders and inventories. (Reporting by Burton Frierson; Editing by Padraic Cassidy) ((burton.frierson@thomsonreuters.com;+1 646-223-6292; Reuters Messaging: burton.frierson.reuters.com@reuters.net))