Midwest steel output rises in May

Midwest steel output rises in May

Midwestern US steel output increased 0.4 percent in May, according to a report released by the Chicago Federal Reserve Bank today. Overall, the Chicago Fed Midwest Manufacturing Index rose 0.3 points in May from April’s revised level of 118.1. The Midwest charted output gains of 1.3 percent but still lagged behind the national average of 3.2 percent. While the steel data is encouraging, it is still a year-on-year decline of 0.6 percent. The steel sector will most likely mark more robust gains once several prominent area steel mills resume full production later this year. All four manufacturing sectors reported increases including machinery output which was up 0.8% following a rise of 1.8% in April. Motor vehicle production meanwhile notched a very slight 0.1 percent increase but was still down 1 percent compared to the previous year. The index consists of survey data from the five states – Illinois, Indiana, Iowa, Michigan and Wisconsin – in the seventh Federal Reserve district.