One month after leading the Chicago Federal Reserve’s Midwest Economy Index, Wisconsin was one of the major contributors to the index’s drop in May.
The index, which covers the five states in the Chicago Fed’s region, dropped from 0.28 in April to 0.12 in May. Any reading of more than zero indicates above-average growth.
The three top performing states in April all took steps back in May. Wisconsin and Indiana were both down 0.06 and Michigan was off 0.04.
Michigan took over as the top performing state at 0.15, followed by Wisconsin at 0.14. The two states were at 0.19 and 0.20, respectively, in April.
The relative MEI, which measures the region’s growth against the nation as a whole, saw a similar picture. Michigan and Wisconsin were still the top performing states at 0.24 and 0.23, but they also saw the largest drops from April, with Wisconsin down 0.06 and Michigan down 0.05.
The declines for Michigan and Wisconsin were felt in different parts of the economy. Wisconsin’s drop was primarily in manufacturing and, to a lesser extent, construction. Michigan saw gains in manufacturing while decreasing in service and construction.
Illinois was the top gaining state, improving by 0.02 on the MEI and 0.05 on the relative measure. Iowa was up 0.01 on the MEI and flat on the relative index.
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