The Midwest Economy Index fell to 0.51 in October from a revised 0.46 in September, first reported as 0.51, the Federal Reserve Bank of Chicago said Wednesday.
The relative MEI dipped to 0.33 in October from a revised 0.43 in September, initially reported as 0.36. The relative MEI indicates that growth in the region was somewhat higher than expected, based on national economic growth.
Manufacturing contributed 0.33 to the index in October, after a 0.30 addition in September, while adding 0.42 to the relative MEI, after a 0.34 addition in September.
Construction and mining was neutral in the month, after contributing 0.03 in September, while adding 0.04 to relative MEI after adding 0.08 to the index in September.
The service sector subtracted 0.05 from MEI in October after contributing 0.09 the prior month, while deleting 0.16 from relative MEI after adding 0.04 in September.
Consumer spending added 0.07 to MEI, after adding 0.04 in September, while contributing 0.03 to relative MEI, after a 0.03 subtraction in September.
By state, Illinois made the largest contribution in October, 0.24, with Wisconsin contributing 0.13, Michigan contributing 0.04, Indiana subtracted 0.01, and Iowa 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.
