The Midwest Economy Index gained to positive 0.07 in February from a negative 0.09 in January, the Federal Reserve Bank of Chicago said Thursday.
The relative MEI slipped to 0.54 in February from 0.73 in January. The relative MEI indicates that growth in the region was somewhat higher than what would be expected based on national economic growth.
Manufacturing subtracted 0.12 from the index, after a 0.21 subtraction in January, while adding 0.05 to the relative MEI, after a 0.20 contribution in January.
Construction and mining added 0.10 in the month, after a 0.08 contribution in January, while contributing 0.24 to the relative MEI index in February after adding 0.23 to the index in January.
The service sector contributed 0.05 to MEI in February after a 0.02 addition the prior month, while adding 0.19 to relative MEI after a 0.23 contribution in January.
Consumer spending added 0.04 to MEI, after adding 0.01 in January, while contributing 0.06 to relative MEI, after a 0.07 addition in January.
By state, Michigan made the largest contribution in February, adding 0.16, while Indiana contributed 0.07 to the index, and Wisconsin contributed 0.02. Illinois deleted 0.13 and Iowa subtracted 0.03.
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.
