The Midwest Economy Index fell to negative 0.03 in February from positive 0.32 in January, the Federal Reserve Bank of Chicago reported Monday.
The relative MEI slid to negative 0.01 in February from positive 0.23 in January. The relative MEI indicates that growth in the region was consistent with expectations.
Manufacturing contributed 0.13 to the index in February, after a 0.23 addition in January, while adding 0.16 from the relative MEI, after a 0.20 contribution in January.
Construction and mining subtracted 0.10 from MEI in the month, after subtracting 0.07 in January, while subtracting 0.03 from relative MEI in February after deleting 0.03 from the index in January.
The service sector subtracted 0.05 from MEI in February after contributing 0.05 the prior month, while subtracting 0.19 from relative MEI after taking 0.06 in January.
Consumer spending subtracted 0.01 from MEI, after adding 0.11 in January, while contributing 0.05 to relative MEI, after a 0.11 addition in January.
By state, Indiana made the largest contribution in February, 0.04, with Illinois adding 0.03, and Wisconsin neutral. Iowa subtracted 0.01, and Michigan subtracted 0.06.
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.
