The Midwest Economy Index grew to 0.67 in December from a revised 0.43 in November,
The relative MEI dropped to 0.21 in December from a revised 0.70 in November, initially reported as 0.72. The relative MEI indicates that growth in the region was somewhat higher than expected, based on national economic growth.
Manufacturing contributed 0.43 to the index in December, after a 0.32 addition in November, while adding 0.21 to the relative MEI, after a 0.57 addition in November.
Construction and mining added 0.02 in the month, after a neutral contribution in November, while adding 0.01 to relative MEI after adding 0.02 to the index in November.
The service sector contributed 0.06 to MEI in December after subtracting 0.01 the prior month, while deleting 0.15 from relative MEI after taking 0.04 in November.
Consumer spending added 0.16 to MEI, after adding 0.12 in November, while contributing 0.15 to relative MEI, after a 0.14 addition in November.
By state, Wisconsin made the largest contribution in December, 0.30, with Illinois contributing 0.15, Michigan contributing 0.12, Iowa adding 0.07, and Indiana contributing 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.
