Midwest growth below average in October: Chicago Fed
The Midwest Economy Index remained at a revised negative 0.12 in October, the Federal Reserve Bank of Chicago said Thursday.
The relative MEI slipped to negative 0.21 from a revised negative 0.10 in September.
Manufacturing added 0.24 to the index, after contributing 0.20 to the index in September, while adding 0.25 to the relative MEI, after a 0.28 contribution in September.
Construction and mining subtracted 0.14 in the month, after a 0.12 subtraction in September, while taking 0.13 from relative MEI index after a 0.12 subtraction in September.
The service sector MEI subtracted 0.08 after a 0.08 subtraction the prior month, while subtracting 0.23 from relative MEI after a 0.20 subtraction in September.
Consumer spending took 0.13 from MEI, after a 0.11 subtraction in August, while subtracting 0.11 from relative MEI after a 0.07 subtraction the prior month.
By state, Illinois made a neutral contribution in October, Michigan subtracted 0.01, Iowa subtracted 0.02, Wisconsin subtracted 0.02, and Indiana subtracted 0.07.
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.