NEW YORK – The Midwest Economy Index slid to negative 0.35 in September from negative 0.24 in August, according to the Federal Reserve Bank of Chicago, as the index sunk to its lowest level since 2009.
The relative MEI posted a negative 0.26 reading in September, down from negative 0.08 reading in August.
Manufacturing contributed positive 0.25 to the index in September, after a positive 0.29 gain in August, while contributing positive 0.51 to the relative MEI, down from positive 0.56 in August.
Construction and mining contributed negative 0.16 in September, after negative 0.15 in August to MEI, and for relative MEI the sector subtracted 0.02 after subtracting 0.01 in August.
The service sector subtracted 0.24 from MEI in September after contributing negative 0.19 in August, while contributing negative 0.51 to relative MEI in September after positive 0.42 in August.
Consumer spending subtracted 0.20 from MEI in September, off from negative 0.18 in August, while contributing negative 0.24 to relative MEI in September after negative 0.20 in August.
By state, Iowa showed the least weakness (negative 0.01), followed by Wisconsin (negative 0.06), Michigan (negative 0.07), then Illinois and Indiana, which were both negative 0.11.
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.
