The Minnesota Index increased 0.4 percent for the fourth consecutive month in September indicating that Minnesota’s economy has shifted into high gear. The index hasn’t been this high for as many constructive months since late 1999 into early 2000. Job growth was strong for the second month in row and the unemployment rate decline by 0.2 points for the second straight month. The only negative component of the index was average weekly manufacturing hours tailing off. The pace of economic growth has doubled since earlier in the year and if the current pace continues through the rest of the year Minnesota’s GDP will top 3 percent for the first time since 2010.
Minnesota’s index in September up 3.6 percent from a year ago compared to the U.S. index being 3.2 percent higher than a year ago. The last time Minnesota’s index was 3.6 percent higher over the year was August 2000. Minnesota’s index has been out pacing the U.S. index over the last three months. Both indexes are real time monthly proxies for GDP growth that are subject to significant revisions as preliminary data get revised.