The Midwest Economy Index fell to 0.09 in November from 0.20 in October, the Federal Reserve Bank of Chicago said on Monday.
Contributions to the November MEI declined from three of the four sectors of non-farm business activity and three of the five district’s states from October.
By state, Illinois added 0.09 in November and Indiana contributed 0.03 while Wisconsin subtracted 0.03, Iowa subtracted 0.01 and Michigan subtracted 0.01.
The relative MEI slipped to -0.24 in November from -0.22 in October, the Chicago Fed said. Contributions to the November relative MEI from two of the four sectors and three of the five states decreased from October.
By state, Illinois added 0.02 and Indiana contributed 0.01 while Wisconsin subtracted 0.11, Iowa subtracted 0.02 and Michigan subtracted 0.12.
The service sector’s contribution to the MEI was unchanged at –0.08 in November. The pace of service sector activity was down in Michigan, but up in Wisconsin and unchanged in Illinois, Indiana, and Iowa. The service sector’s contribution to the relative MEI was unchanged at –0.37 in November.
The contribution from consumer spending indicators to the MEI decreased to -0.02 in November from 0.02 in October. Consumer spending indicators were down in Illinois, Indiana, and Iowa, but steady in Michigan and Wisconsin. Consumer spending’s contribution to the relative MEI improved to -0.01 in November from -0.02 in October.
The index is a weighted average of 129 state and regional indicators encompassing five states in the Seventh Federal Reserve District, which includes Illinois, Indiana, Iowa, Michigan, and Wisconsin. The index measures growth in non-farm business activity in the Midwest, including the including manufacturing, construction and mining, services, and consumer spending sectors.
A zero value for the MEI has been associated with the Midwest economy expanding at its historical trend average rate of growth; positive values with above-average growth in standard deviation units; and negative values with below-average growth. A zero value for the relative MEI has been associated with the Midwest economy growing at a rate historically consistent with the growth of the national economy; positive values with above-average relative growth in standard deviation units; and negative values with below-average relative growth.
