The Midwest Economy Index slipped to 0.39 in March from a downwardly revised 0.44 in February, first reported as 0.49, the Federal Reserve Bank of Chicago said Thursday.
The relative MEI climbed to 0.84 in March from an upwardly revised 0.54 in February, first reported as 0.44. The relative MEI indicates that growth in the region was moderately higher than expected, based on national economic growth.
Manufacturing contributed 0.09 to the index, after a 0.13 addition in February, while adding 0.19 to the relative MEI, after a 0.12 addition in February.
Construction and mining added 0.01 in the month, after a 0.04 contribution in February, while adding 0.13 to relative MEI after adding 0.11 to the index in February.
The service sector contributed 0.21 to MEI in after adding 0.23 the prior month, while contributing 0.42 to relative MEI after adding 0.25 in February.
Consumer spending added 0.08 to MEI, after adding 0.05 in February, while contributing 0.09 to relative MEI, after a 0.06 addition in February.
By state, Michigan made the largest contribution in March, 0.19, with Wisconsin contributing 0.15, Iowa contributing 0.08, and Indiana contributing 0.02. Illinois subtracted 0.01.
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.
