The Midwest Economy Index fell to negative 0.02 in March from a revised positive 0.05 in February, the Federal Reserve Bank of Chicago reported Monday.
The relative MEI slid to negative 0.13 in March from a revised positive 0.27 in February. The relative MEI indicates that growth in the region was "somewhat lower" than expectations.
Manufacturing contributed 0.12 to the index in March, after a 0.09 addition in February, while adding 0.13 from the relative MEI, after a 0.25 contribution in February.
Construction and mining subtracted 0.08 from MEI in the month, after subtracting 0.09 in February, while subtracting 0.01 from relative MEI in March after deleting 0.03 from the index in February.
The service sector subtracted 0.21 from MEI in March after subtracting 0.06 the prior month, while subtracting 0.47 from relative MEI after taking 0.15 in February.
Consumer spending added 0.14 to MEI, after adding 0.11 in February, while contributing 0.22 to relative MEI, after a 0.19 addition in February.
By state, Indiana made the largest contribution in March, 0.03, with Illinois adding 0.01, and Wisconsin adding 0.01. Iowa subtracted 0.02 and Michigan subtracted 0.04.
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.
