The Midwest Economy Index narrowed to negative 0.21 in November from a downwardly revised negative 0.47 in October, the Federal Reserve Bank of Chicago reported Friday.
The relative MEI posted a positive 0.63 reading in November, up from its revised negative 0.09 reading in October.
October's MEI was originally reported as negative 0.43, while the relative MEI was negative 0.14.
Manufacturing subtracted 0.15 from the index in November, after a 0.19 subtraction in October, while contributing 0.21 to the relative MEI, after a 0.03 subtraction in October.
Construction and mining added 0.01 to MEI in November, after subtracting 0.08 in October, while adding 0.10 to relative MEI in November after contributing 0.03 in October.
The service sector subtracted 0.07 from MEI in November after subtracting 0.04 in October, while adding 0.21 to relative MEI in November after contributing 0.07 in October.
Consumer spending took 0.24 from MEI in November, after subtracting 0.16 in October, while contributing 0.11 to relative MEI, after subtracting 0.16 in October.
All five states made negative contributions in November, with Indiana at negative 0.01, Illinois at negative 0.03, Michigan at negative 0.04, Iowa at negative 0.04, and Wisconsin at negative 0.05.
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.
