Index Shows Midwest Economic Growth Increased in December


Today, the Federal Reserve Bank of Chicago released December 2016 figures for its Midwest Economy Index (MEI). The MEI is a weighted average of 129 indicators designed to measure non-farm business activity in the Midwest (IL, IN, MI, WI, IA). The MEI is contructed of two index values:
  • The MEI captures both national and regional factors driving Midwest growth
  • The relative MEI provides a picture of Midwest growth conditions relative to those of the nation.

The MEI increased to +0.06 in December, from -0.02 in November. December’s positive MEI value indicates that the Midwest economy grew slightly faster than would typically be suggested by its historic growth rate.

The relative MEI decreased to +0.12 in December from +0.19 in November. The positive value, however, indicates that the Midwest economy grew at a rate faster than the growth rate of the national economy.

By state, Michigan and Indiana made positive overall contributions to the MEI, while Illinois, Iowa and Wisconsin made negative contributions. By sector, overall contributions were positive in manufacturing (+0.05) and consumer spending (+0.03), negative in construction (-0.02), and neutral in services (0.0).

The following chart illustrates five-year trend lines for the MEI and Relative MEI indexes.

The following chart illustrates contributions to the MEI by sector for Illinois and the Midwest as a whole.

Source: Federal Reserve Bank of Chicago

 

Please refer to the Chicago Federal Reserve Bank press release for more information.

World Business Chicago is a public-private, non-profit partnership and drives inclusive economic growth and job creation, supports business, and promotes Chicago as a leading global city. 

WBC’s “Economic Briefs” track indicators from month to month to gauge the strength of several aspects of Chicago’s economy, including unemployment, population, venture capital, job openings and new hires, home sales, tourism, etc. This data provides a clear analytic framework for specific Plan strategies and initiatives. For a summary of these and other economic indicators, refer to WBC’s monthly Chicago By The Numbers. World Business Chicago is a public-private, non-profit partnership and drives inclusive economic growth and job creation, supports business, and promotes Chicago as a leading global city. 

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