The Chicago Fed Survey of Economic Conditions (CFSEC) Activity Index increased to +17 in February from +14 in January, suggesting that economic growth was above trend.

• The CFSEC Manufacturing Activity Index decreased to +18 in February from +24 in January, but the CFSEC Nonmanufacturing Activity Index increased to +13 in February from +7 in the previous month.
• Respondents’ outlooks for the U.S. economy for the next 12 months improved slightly, and remained optimistic on balance. Forty-four percent of respondents expected an increase in economic activity over the next 12 months.
• The pace of current hiring decreased, but respondents’ expectations for the pace of hiring over the next 12 months increased. Both hiring indexes remained negative.
• Respondents’ expectations for the pace of capital spending over the next 12 months increased, but the capital spending expectations index remained negative.
• The labor cost pressures index decreased, as did the nonlabor cost pressures index. Both cost pressures indexes remained negative.