Chicago Fed Midwest Manufacturing Index drops 2.3%

The Chicago Federal Reserve Bank’s Midwest Manufacturing Index (CFMMI) fell 2.3 percent in January 2007, to a seasonally adjusted level of 102.1 (2002 = 100), according to data released on March 19. Revised data show the index rose 0.8 percent in December, to 104.6. The Federal Reserve Board’s industrial production index for manufacturing (IPMFG) was down 0.8 percent in January. Regional output in January was 1.0 percent lower than a year earlier, below the 1.9 percent increase in national output.

All four of the regional industry sectors decreased in January:

• Regional auto sector output was down 3.5 percent;
• Regional Midwest machinery sector output fell by 2.7 percent;
• Regional resource sector output decreased 2.0 percent; and
• Regional steel sector output edged down 0.1 percent.

The Midwest’s auto sector production fell 3.5 percent in January after increasing 1.4 percent in December. The nation’s auto output was down 2.1 percent in January. Compared with a year earlier, the Midwest’s automotive output was down 4.9 percent, while the nation’s auto output edged up 0.3 percent.

The Midwest’s machinery sector output decreased 2.7 percent in January after rising 2.7 percent in December. The nation’s machinery output fell 0.2 percent in January. Regional machinery output in January was 3.6 percent above year-earlier levels, while national machinery output was up 13.1 percent.

The Midwest resource sector’s output was down 2.0 percent in January after remaining unchanged in December. The nation’s resource sector’s output was down 0.9 percent in January. All five of the subsectors of the resource sector — paper, wood, food production, chemicals production and non-metallic minerals production — decreased in January. Compared with a year ago, both regional and national resource output were down 1.3 percent in January.

The region’s steel sector output edged down 0.1 percent in January, after falling 1.0 percent in December. The nation’s steel output was down 0.2 percent in January. Regional steel output was 1.1 percent below its January 2006 level, slightly higher than the 1.2 percent decrease in the nation’s steel output.

To view all of the report’s charts and graphs, click on the link below:

http://www.chicagofed.org/economic_research_and_data/files/cfmmi_january2007.pdf