The Midwest Economy Index grew to positive 0.12 in April from a revised negative 0.04 in March, the Federal Reserve Bank of Chicago reported Friday.
The relative MEI slid to negative 0.23 in April from a revised negative 0.13 in March. The relative MEI indicates that growth in the region was "somewhat lower" than expectations.
Manufacturing contributed 0.11 to the index in April, after a 0.10 addition in March, while adding 0.02 to the relative MEI, after a 0.14 contribution in March.
Construction and mining subtracted 0.01 from MEI in the month, after subtracting 0.07 in March, while adding 0.03 to relative MEI in April after deleting 0.02 from the index in March.
The service sector subtracted 0.17 from MEI in April after subtracting 0.20 the prior month, while subtracting 0.47 from relative MEI after taking 0.47 in March.
Consumer spending added 0.19 to MEI, after adding 0.14 in March, while contributing 0.18 to relative MEI, after a 0.21 addition in March.
By state, Indiana made the largest contribution in April, 0.06, with Illinois adding 0.05, and Iowa adding 0.05. Wisconsin subtracted 0.02 and Michigan subtracted 0.01.
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.
