The May Midwest Economy Index slipped to 0.51 from an upwardly revised 0.55 in April, first reported as 0.53, the Federal Reserve Bank of Chicago said Friday.
The relative MEI plunged to negative 0.31 from a downwardly revised positive 0.14 in April, first reported as positive 0.18.
Manufacturing added 0.39 to the index, after contributing 0.44 to the index in April, while adding 0.08 to the relative MEI, after a 0.27 contribution in April.
Construction and mining added 0.08 in the month, after a 0.08 contribution in April, while contributing 0.05 to relative MEI index after a 0.11 addition in April.
The service sector MEI subtracted 0.05 after a 0.03 subtraction in the prior month, while subtracting 0.44 from relative MEI after a 0.27 subtraction in April.
Consumer spending added 0.10 to MEI, after a 0.06 contribution in April, while making a neutral contribution in May, after a 0.03 contribution the prior month.
By state, Wisconsin contributed 0.16 in May, Illinois added 0.12, Michigan contributed 0.10, Iowa added 0.08, and Indiana contributed 0.04.
The index is a weighted average of 129 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.