The Midwest Economy Index grew to 0.41 in May from a revised 0.11 in April, the Federal Reserve Bank of Chicago reported Monday.
The relative MEI slid to negative 0.38 in May from a revised negative 0.36 in April. The relative MEI indicates that growth in the region was "moderately lower" than expectations.
Manufacturing contributed 0.27 to the index in May, after a 0.12 addition in April, while subtracting 0.06 from the relative MEI, after a 0.02 subtraction in April.
Construction and mining was neutral in the month, after subtracting 0.02 in April, while adding 0.04 to relative MEI in May after adding 0.02 from the index in April.
The service sector subtracted 0.08 from MEI in May after subtracting 0.18 the prior month, while subtracting 0.48 from relative MEI after taking 0.56 in April.
Consumer spending added 0.21 to MEI, after adding 0.18 in April, while contributing 0.12 to relative MEI, after a 0.19 addition in April.
By state, Iowa made the largest contribution in May, 0.10, with Illinois, Indiana and Wisconsin each adding 0.08, and Michigan contributed 0.05.
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.
