By Joshua Kirby
U.S. economic growth picked up pace last month as production and demand increased, according to a monthly index published Monday.
The Chicago Fed National Activity Index increased to 0.05 in February from a downwardly revised minus 0.54 in January. All four categories covered by the index improved on the month, and three made a positive contribution to the headline index.
The measure of production turned slightly positive, as did sales, orders and inventories, and employment, the reserve bank said. Personal consumption and housing meanwhile made a neutral contribution.
Despite the upturn in February, the index's three-month moving average deteriorated to a level suggesting more subdued activity. The CFNAI diffusion index--which captures how much the change in the monthly index is spread among the indicators over three months--also fell on month to minus 0.09.
Periods of economic expansion have historically been associated with values of the CFNAI Diffusion Index above minus 0.35.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
03-25-24 0844ET
