Gauge of economic activity fell in April

WASHINGTON - an indicator of U.S. economic activity fell in April that the Japanese earthquake hurt automobile production.

The Federal Reserve Bank of Chicago said its index was less 0.45, in April, unlike a positive reading of 0.32 in March. It is the lowest reading since August.

A reading below zero indicates below-trend growth in the national economy. Economists say normal growth is approximately 3% of the pace.

Plants produce less in April, a main reason for the decline. A shortage of parts from the Japanese earthquake on March 11 forced automakers to reduce output.

Economists say that supply disruptions will very likely be temporary. They say also business U.S. are likely to be of benefit once that Japanese reconstruction effort is ongoing. Economists say U.S. manufacturers are likely to fill the orders related to these efforts.