Chicago Fed National Activity Index Up

Washington, DC, March 26, 2007--The Federal Reserve Bank of Chicago on Monday said its gauge of the national economy rose in February, boosted mostly by strength in production indicators.

The Chicago Fed said its National Activity Index rose to 0.03 in February from an upwardly revised -0.72. It was previously reported as -0.74 in January.

The three-month moving average of the index was negative for a sixth straight month, but rose to -0.02 from an upwardly revised -0.23. It was originally reported as -0.29 in January.

The Chicago Fed said the jump in the three-month average toward zero suggests growth in national economic activity was near its historical trend and that inflation pressures over the next year are balanced.

Stronger production-related indicators reflected a 1 percent increase in total industrial production and rising capacity utilization on the month.

The three other broad categories of indicators (employment, consumption and housing/sales) were all negative.

Employment indicators were hurt by slower job creation in February, even as the national jobless rate fell.

Overall, 38 of the 85 individual indicators tracked by the Chicago Fed made positive contributions in February while 47 made negative contributions. Some 51 indicators improved in February from January while 34 indicators deteriorated.