The Minnesota Index increased 0.1 percent for the third month in a row in May. The slowdown in the index over the last few months implies that Minnesota’s rate of economic growth has slipped in 2014. The index hasn’t increased this slowly over a three month period since the first few months of 2010. The U.S. index showed no signs of slowing, advancing 0.3 percent for the fourth straight month in May. The U.S. index’s solid increase since February is, however, inconsistent with the 2.9 percent annual rate decline in GDP during the first quarter of 2014.
Minnesota’s real GDP increased 2.8 percent in 2013, significantly outpacing the 1.9 percent national increase. Private sector GDP growth in Minnesota was even stronger last year, climbing 3.1 percent compared to the U.S. private sector GDP gain of 2.3 percent. Minnesota’s real GDP expansion last year ranked 13th highest among the states. Minnesota’s real GDP as measured by the Minnesota index is up only 0.8 percent through the first five months of 2014 which is significantly below the 1.3 percent increase in the U.S. index. Expect an upward revision in the Minnesota Index and a downward revision in the U.S. Index as data revisions occur in the future.
See the feature article from the Minnesota Employment Review, May 2010, for more information on the Minnesota Index.