Midwest Manufacturing Growth Slower than the Nation, Chicago Fed Index Shows
The Chicago Fed Midwest Manufacturing Index (CFMMI) decreased 0.1% from April to May, the first decline in seven months. By comparison, the Federal Reserve Board’s industrial production index for manufacturing increased by 0.5% in May. This is the first time in a year and a half that every sector in the region had slower growth from the prior month than its national counterpart. The weakest performance in the Midwest was posted by the auto sector, which declined by 1.0% in May. This sector continued to be affected by the strike at Chrysler’s Mound Road engine plant in Detroit, which was settled in the middle of May. Also experiencing a decline was the region’s resource sector, which decreased 0.3%. The machinery sector experienced the largest regional gain, rising 0.5% in May. The region’s steel sector rose by 0.4%, its sixth consecutive gain.