NEW YORK – The Midwest Economy Index rose to positive 0.78 in March from positive 0.39 in February, according to the Federal Reserve Bank of Chicago, as gains in the manufacturing sector helped pull growth above its historical trend.
The Midwest was outperforming the nation as a whole, the Fed said, as the relative MEI also posted a positive 0.62 reading in March, up from positive 0.26 in February.
Manufacturing contributed positive 0.66 to the index in March, after a positive 0.46 gain in February, while contributing positive 0.63 to the relative MEI, up from positive 0.52 in February.
Construction and mining contributed negative 0.21 in March, after negative 0.27 in February to MEI, and for relative MEI the sector subtracted 0.14 after subtracting 0.21 in February.
The service sector added 0.15 to MEI in March after contributing 0.05 in February, while contributing positive 0.10 to relative MEI in March after negative 0.11 in February.
Consumer spending added 0.18 to MEI in March, up from positive 0.17 in February, while contributing positive 0.03 to relative MEI in March after positive 0.05 in February.
By state, Michigan showed the strongest growth, followed by Illinois, Wisconsin, Indiana and Iowa.
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.
