U.S. Economic Growth Picks Up Pace In January

Chicago Fed index shows faster-than-average growth in the new year

Published on Feb. 23, 2026

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America's economic activity picked up pace at the start of the year, according to a monthly index released Monday. The Chicago Fed National Activity Index jumped to 0.18 in January from minus 0.21 in December, indicating the economy is growing faster than its historical average. The three-month moving average index also rose, suggesting a period of economic growth.

Why it matters

The Chicago Fed National Activity Index is a closely watched indicator of the overall health of the U.S. economy. An increase in the index signals that economic growth is accelerating, which can have implications for consumer spending, business investment, and government policy decisions.

The details

The diffusion index, which measures how widespread the economic changes are across 85 indicators, also improved in January, rising to minus 0.06 from minus 0.36. This indicates that more economic indicators were contributing to growth compared to the previous month. Rising activity in production and stronger employment-related indicators were the main drivers behind the index's improvement, while consumer spending and housing were neutral contributors.

  • The Chicago Fed National Activity Index was released on Monday, February 23, 2026.
  • The index showed economic growth in January 2026.

The players

Chicago Fed

The Federal Reserve Bank of Chicago, one of the 12 regional Federal Reserve Banks that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System.

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The takeaway

The pickup in economic growth signaled by the Chicago Fed index suggests the U.S. economy is gaining momentum at the start of the year, which could lead to increased consumer spending, business investment, and potentially changes in federal monetary policy.