NEW YORK – The Midwest Economy Index improved to negative 0.15 in November from negative 0.30 in October, according to the Federal Reserve Bank of Chicago, the second straight increase, but the fourth consecutive month below its historical trend.
The relative MEI posted a positive 0.04 reading in November, up from a negative 0.32 reading in October.
Manufacturing contributed positive 0.21 to the index in November, after a positive 0.22 gain in October, while contributing positive 0.42 to the relative MEI, up from positive 0.40 in October.
Construction and mining contributed negative 0.19 in November, after negative 0.18 in October to MEI, and for relative MEI the sector subtracted 0.08 after subtracting 0.07 in October.
The service sector subtracted 0.13 from MEI in November after contributing negative 0.17 in October, while contributing negative 0.32 to relative MEI in November after negative 0.48 in October.
Consumer spending subtracted 0.03 from MEI in November, up from negative 0.17 in October, while contributing positive 0.01 to relative MEI in November after negative 0.17 in October.
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.
