A new economic index that provides a current reading of the economic health of the franchise sector -The Franchise Business Index (FBI)-increased 0.3 percent in February to 107.7 (Jan 2000=100) - the sixth consecutive monthly gain, the International Franchise Association announced today. The index was up 1.4 percent compared with February 2011.

Designed to provide more consistent and timely tracking of the growing role of franchise businesses in the U.S. economy, the index was developed by IHS Global Insight on behalf of the IFA. The FBI combines indicators of growth in the industries where franchising is most prevalent and measures of the general economic environment for franchising.

"The franchise industry is a unique business sector and a vitally important contributor to the U.S. economy spanning some 300 lines of business, supporting nearly 18 million jobs, 825,000 establishments and providing for over $2.1 trillion in economic output," said IFA President & CEO Steve Caldeira. "Measuring the strength of the franchise industry through the Franchise Business Index provides another indicator of the health of the economy as a whole. While the index shows we are moving in the right direction, more certainty in the tax and regulatory environments would help franchise businesses grow faster, creating more jobs and economic output at the local, state and national levels."

Following a period of flat to declining values in mid-2011, the FBI turned up in September and has shown increases of 0.3 percent in three of the last five months.

Increases among the components of the index tied to the labor market and small business optimism contributed most to the February gain in the FBI. An improvement in consumer demand, which had been flat at the end of last year, gave a small boost to the index. Credit conditions showed no change in February.