Chicago, IL, November 22, 2005--The Federal Reserve Bank of Chicago on Tuesday said its gauge of the national economy rose strongly in October, led by production-related indicators.
The Chicago Fed said its National Activity Index rose to +0.73 in October from a downwardly revised minus 0.82 in September, initially reported at minus 0.71.
The three-month moving average of the index was minus 0.03 in October after being at minus 0.23 in September.
The moving average suggests growth in economic activity was near its historical trend, and indicates little inflationary pressure over the coming year, the Fed said.
All four broad categories of indicators that make up the index made positive contributions in October.
Production indicators jumped as hurricane-related recovery efforts and resolution of the Boeing (BA.N: Quote, Profile, Research) labor strike boosted industrial production and capacity utilization, the Fed said.
Employment-related indicators were helped by a positive October payrolls number and falling unemployment rate.
Overall, 51 of the 85 individual indicators tracked by the Chicago Fed made positive contributions in October while 33 made negative contributions and one was neutral.
