Wisconsin continued to have the largest contribution to growth in the Chicago Federal Reserve’s five state region, but the May Midwest Economy Index pointed towards slower growth overall.
The index attempts to measure the region’s growth against historical trends and the country as a whole. A reading of zero on the MEI indicates growth at historical levels while a zero on the relative MEI indicates growth consistent with the national economy.
The May indices released Friday by the Chicago Fed showed the region’s growth slowing and coming more in line with the country as a whole. The MEI declined from 0.7 to 0.51 while the relative MEI dropped from 0.64 to 0.09.
The regional decline was primarily driven by drops in construction and service industries on both measures along with manufacturing on the relative measure.
Wisconsin saw a similar pattern but again had the largest contribution in the region, which also includes Illinois, Indiana, Iowa and Michigan. The state’s MEI measure dropped from 0.27 to 0.22 and its relative measure was down from 0.3 to 0.15. Manufacturing continued to lead Wisconsin’s performance with the sector’s MEI reading stead at 0.12 and its relative MEI declinign from 0.12 to 0.09.
Overall, all five states saw declines and May marked the fourth straight month Wisconsin had the best performance in the region.
Michigan was second with a MEI of 0.13 and relative measure of 0.05. Illinois came in a 0.11 and 0.03, Iowa was at 0.07 and -0.03. Indiana was last at -0.01 and -0.12.
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