The Minnesota Index increased 0.4 percent for the second straight month in July, indicating that Minnesota’s economy is picking up speed. Minnesota’s economy expanded slightly faster than the U.S. economy as the U.S. index increased 0.3 percent for the sixth consecutive month. Economic activity in the state has been increasing faster than the U.S. economy over the last few months based on the two indices after lagging earlier in the year.
Two of the four components of Minnesota’s index - nonfarm payroll employment and average weekly manufacturing hours – slipped slightly in June. Another component, the state unemployment rate, was unchanged. The final component, real wage and salary disbursements, increased which boosted the index.
Minnesota’s index in July was up 3.3 percent from a year ago compared to a 3.2 percent increase nationwide. Both indices are monthly proxies for the economic growth that is subject to significant revisions as more reliable data becomes available.
See the feature article from the Minnesota Employment Review, May 2010, for more information on the Minnesota Index.