Midwest Manufacturing Slows

Chicago, IL, October 30, 2007--The Chicago Fed Midwest Manufacturing Index slipped 0.1% in September. Revised data show the index declined 0.6% in August.

The Federal Reserve Board’s industrial production index for manufacturing (IPMFG) was unchanged in September. Regional output in September was 0.5% higher than a year earlier, below the 1.6% increase in national output.

Two of the four regional industry sectors decreased in September: Regional auto sector production declined 1.2%; Regional steel sector output decreased 0.3%; Regional resource sector output inched up 0.1%; and

Regional machinery sector output rose 0.7%.

The Midwest’s auto sector production declined 1.2% in September after rising 0.5% in August. The nation’s auto output was also down 1.2% in September. The Midwest’s automotive output was unchanged in September relative to its year-ago value, while the nation’s auto output was up 2.5%.

The region’s steel sector output was down 0.3% in September after decreasing 0.9% in August. The nation’s steel output was up 0.6% in September. Regional steel output was up 0.3% from its September 2006 level, while the national steel output increased 1.7%.

The Midwest resource sector’s output edged up 0.1% in September after declining 1.0% in August. One of the five subsectors of the resource sector—chemicals—increased, while food was unchanged and nonmetallic minerals, paper, and wood production decreased from August to September. The national resource sector’s output increased 0.3% in September.

Compared with a year ago, regional resource output was up 1.8% in September, higher than the 1.3% increase in the national resource output.

The Midwest’s machinery sector output increased 0.7% in September after falling 1.1% in August. The nation’s machinery output was up 0.3% in September. Regional machinery output in September was 0.1% above year-earlier levels, while national machinery output was up 4.9%.