The Minnesota Index, U.S. Index, and Minnesota Leading Index are generated by the Philadelphia Federal Reserve Bank. At the beginning of each year the indexes are delayed by two months as revised component numbers are used to recalibrate the indexes. Updated coincident indexes are scheduled for release on April 2 (www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident) while leading indexes will be released April 4 (www.philadelphiafed.org/research-and-data/regional-economy/indexes/leading).
The Minnesota Index after slipping 0.1 percent in November inched up 0.1 percent in December. Minimal wage and salary employment growth, slipping average weekly manufacturing hours and a flat unemployment rate added up to the small gain. The U.S. index increased 0.2 percent for in December. Minnesota’s index after out pacing the U.S. index from August through October lagged the national index in for the second straight month.
December’s reading was only 1.2 percent higher than a year ago for the second straight month while the U.S. annual increase was 2.9. Minnesota’s economy slowed noticeably over the last two months of the year. Minnesota finished in the bottom ten of states when it comes to growth in state indexes in 2019. The low ranking held for both December 2018 to December2019 growth or annual average growth. The index will be revised in March and Minnesota’s economic growth is expected to look somewhat better after revisions.