NEW YORK, Oct 26 (Reuters) - The Chicago Federal Reserve Bank said on Monday its Midwest Manufacturing Index rose in September, as auto sector production rebounded.
However, vehicle-making may decline as the effect of the government’s recently ended “cash-for-clunkers” buying incentive program fades, some analysts expect.
The index rose to a seasonally adjusted 82.3 from a revised 81.6 in August.
Compared with a year earlier, Midwest output was down 15.7 percent, steeper than the 7.2-percent national decline.
Midwest auto sector production rose by 5.5 percent in September after increasing by 1.8 percent in August. But compared with a year earlier, the region’s automotive output was down 16.3 percent in September.
Regional steel output rose by 1.3 percent after rising by 2.2 percent in August.
Machinery sector output fell by 1.8 percent after increasing 1.1 percent in August.
Resource sector output rose 0.2 percent after rising 2.1 percent in August.
Compared with a year earlier, the region’s resource output was down 2.4 percent, while national resource production was unchanged.
The Chicago Fed Midwest Manufacturing Index is a monthly estimate of manufacturing output in the region by major industries. The survey covers the five states that make up the seventh Federal Reserve district: Illinois, Indiana, Iowa, Michigan and Wisconsin. (Reporting by John Parry; Editing by James Dalgleish)