NEW YORK – The Midwest Economy Index slid to positive 0.83 in May from positive 0.94 in April, according to the Federal Reserve Bank of Chicago, as the index remained above its historical trend for the 15th straight month.
The Midwest was outperforming the nation as a whole, the Fed said, as the relative MEI posted a positive 1.33 reading in April, up from positive 1.11 reading in April.
Manufacturing contributed positive 0.77 to the index in May, after a positive 0.83 gain in April, while contributing positive 1.02 to the relative MEI, up from positive 0.88 in April.
Construction and mining contributed negative 0.15 in May, after negative 0.18 in April to MEI, and for relative MEI the sector subtracted 0.04 after subtracting 0.10 in April.
The service sector added 0.07 to MEI in May after contributing 0.14 in April, while contributing positive 0.30 to relative MEI in May after positive 0.28 in April.
Consumer spending added 0.13 to MEI in May, off from positive 0.16 in April, while contributing positive 0.06 to relative MEI in May after positive 0.05 in April.
By state, Michigan showed the strongest growth, followed by Wisconsin, Iowa, Illinois, and Indiana.
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.
