The Federal Reserve Bank of Chicago released May 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 +0.51 in May from +0.76 in April, but its positive value is still an indication of above-trend economic growth in the Midwest. The relative MEI, a measure of Midwest economic activity relative to the nation, decreased to +0.57 in May from +0.71 in April; an indication that the Midwest economy is underperforming with respect to national trends. This breaks a six-month trend where the midwest economy had exceeded national trends.
Four of five states made positive contributions to the MEI in May, including Illinois (+0.10), where growth in the MEI was led by positive contributions from the manufacturing sector (+0.09) and consumer spending (+0.04). The following chart illustrates Illinois’ by sector contributions and Midwest overall by sector contributions to the MEI in May 2012.
Source: Federal Reserve Bank of Chicago
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.
