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fuel economy instrument gauge-1987 325 ic

The fuel economy instrument gauge on my 1987 325ic has a problem. When
going thru the gears the needle races back and forth from 7mpg to 40
mpg. When you a into the throttle the vacumn drops off and the needle
drops to seven when your coasting the needle races to 40 mpg. The
instrument apparently operates off engine vacuum. I suspect the sensor
but have not been able to locate. Can anyone help? The vehicle has 49k
original miles.

			thanks....dale