This morning, the Federal Reserve Bank of Chicago released June 2012 figures for its Midwest Economy Index (MEI), a weighted average of 129 indicators designed to measure growth in nonfarm business activity in the Midwest (IL, IN, MI, WI, IA).
The overall MEI decreased to +0.21 in June from +0.53 in May, but its positive value marks the eighth consecutive month of above-trend economic growth in the Midwest. The relative MEI, a measure of Midwest economic activity relative to the nation, increased to +0.72 in June from +0.66 in May; an indication that the Midwest economy is outperforming with respect to national trends.
Three of five states made positive contributions to the MEI in June; Illinois made a neutral contribution (0.00), with positive contributions from the manufacturing sector (+0.05) and consumer spending (+0.02). Despite these positive contributions, month-over-month decreases in activity were reported across all sectors in at least four of five states, including Illinois. The following chart illustrates Illinois’ and total Midwest contributions by sector to the MEI in June 2012.
The following chart illustrates five-year trend lines for the MEI and Relative MEI indexes. 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.
For additional details on the most recent CFNAI-MA3, refer to World Business Chicago’s summary.Source: Federal Reserve Bank of Chicago
Please refer to the Chicago Federal Reserve Bank press release for a more detailed explanation.