The Chicago Federal Reserve Bank said on Monday that its Midwest Manufacturing Index rose in September, led by an increase in automotive production.
The Chicago Fed Midwest Manufacturing Index, a monthly estimate of manufacturing output in the states of Illinois, Indiana, Iowa, Michigan and Wisconsin, rose to a seasonally adjusted 82.3 in September from a revised 81.6 in August. Compared to a year ago, the index was down 15.7 percent.
Steel output in the Midwest rose by 1.3 percent in September after rising by 2.2 percent in August, while machinery sector output fell 1.8 percent and resource sector output rose 0.2 percent in September.
Midwest auto sector production posted the biggest increase among the industries measured by the index, rising by 5.5 percent in September after rising 1.8 percent in August. However, it is expected that Midwest auto production figures will slow somewhat as the effect of the US government's "cash for clunkers" program weakens.