The Midwest Economy Index held at 0.51 in September unchanged from a revised 0.51 in August, the Federal Reserve Bank of Chicago reported Friday.
The relative MEI gained to 0.36 in September from a revised 0.13 in August. The relative MEI indicates that growth in the region was somewhat higher than expected, based on national economic growth.
Manufacturing contributed 0.34 to the index in September, after a 0.28 addition in August, while adding 0.30 to the relative MEI, after a 0.11 addition in August.
Construction and mining added 0.03 in the month, after contributing 0.03 in August, while adding 0.07 to relative MEI after adding 0.07 to the index in August.
The service sector contributed 0.09 to MEI in September after contributing 0.15 the prior month, while adding 0.02 to relative MEI after subtracting 0.01 in August.
Consumer spending added 0.05 to MEI, after adding 0.06 in August, while subtracting 0.03 from relative MEI, after a 0.04 subtraction in August.
By state, Illinois made the largest contribution in September, 0.20, with Wisconsin contributing 0.14, Michigan contributing 0.11, Indiana adding 0.04, and Iowa contributing 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.
