The Minnesota Index increased 0.5 percent for the second straight month in August, signaling that Minnesota’s economy has been gaining momentum over the last few months. All four components of the index moved positively with job growth accelerating, unemployment decreasing, average weekly manufacturing hours climbing, and real wage and salary disbursements advancing. The pace of economic growth in Minnesota has doubled since earlier in the year with the average monthly increase in the index jumping from 0.2 percent during the first three months to 0.4 percent over the last five months.
Minnesota’s index in August was up 3.8 percent from a year ago while the U.S. index was 3.0 percent higher than a year ago. Minnesota’s index has been increasing faster than the U.S. index since May. Both indices are monthly proxies for the economic growth that are subject to significant revisions as preliminary data get revised.