Today, the Federal Reserve Bank of Chicago released October 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 captures both national and regional factors driving Midwest growth and the relative MEI provides a picture of Midwest growth conditions relative to those of the nation.
While October’s negative MEI value indicates that the Midwest economy grew at a slower rate in October than would typically be suggested by its historic growth rate, the pace of growth picked up somewhat. The overall MEI increased to -0.01 in October from -0.11 in September.
October’s positive relative MEI index value indicates that the Midwest economy grew at a rate faster than the growth rate of the national economy. The relative MEI increased to +0.25 in October from +0.16 in September.
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 consumer spending (+0.02), manufacturing (+0.01) and services (+0.01), and negative in construction (-0.05).
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.
Chaired by Mayor Rahm Emanuel, World Business Chicago is the public-private partnership leading the Plan for Economic Growth and Jobs in order to drive business development, cultivate talent, and put Chicago at the forefront of the global economy.
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.