The Midwest Economy Index declined to 0.21 in June from 0.53 in May, its eighth straight month above its historical trend, according to the Federal Reserve Bank of Chicago.
The relative MEI posted a 0.72 reading in June, up from its 0.66 reading in May.
Manufacturing contributed 0.44 to the index in June, after a 0.53 contribution in May, while contributing 0.73 to the relative MEI, up from 0.61 in May.
Construction and mining subtracted 0.28 from MEI in June, after subtracting 0.19 in May, and for relative MEI the sector subtracted 0.20 in June, after subtracting 0.10 in May.
The service sector subtracted 0.02 from MEI in June after contributing 0.03 in May, while adding 0.07 to relative MEI in June after contributing 0.02 in May.
Consumer spending added 0.07 to MEI in June, down from 0.16 in May, while contributing 0.12 to relative MEI in June after a 0.13 contribution in February.
The index is a weighted average of 128 state and regional indicators encompassing the five states in the Seventh Federal Reserve District (Illinois, Indiana, Iowa, Michigan, and Wisconsin). The index measures growth in nonfarm business activity.
A zero value for the MEI indicates that the Midwest economy is expanding at its historical trend rate of growth; negative values are associated with below-trend growth while positive values indicate above-trend growth. A zero value for the relative MEI indicates that the Midwest economy is growing at a rate historically consistent with the growth of the national economy; positive values indicate above-average relative growth; and negative values indicate below-average relative growth.
