Chicago Fed Midwest factory activity up in July

NEW YORK (Reuters) - The Chicago Federal Reserve Bank said on Thursday its Midwest manufacturing index rose in July, driven by gains in the auto, steel and machinery sectors.

The index rose 2.2 percent to a seasonally adjusted 81.4 after falling 0.2 percent in June to 79.6.

Compared with a year earlier, Midwest output increased 13.1 percent, more than the 8.1-percent national increase during that same period.

Midwest auto sector production rose by 7.2 percent in July after falling by 0.4 percent in June. Compared with a year earlier, the region's automotive output was up 27 percent.

Regional steel output grew by 2.2 percent after increasing by 0.5 percent in June. Output was up by 24.7 percent compared to its July 2009 level.

Machinery sector output increased by 0.9 percent in July after rising 0.5 percent in June.