CHICAGO -(Dow Jones)- The economic recovery sustained a modest setback in the midwestern U.S. during December, based on data released Wednesday by the Federal Reserve Bank of Chicago.
The Chicago Fed's Midwest Manufacturing Index decreased 0.3% to 84.1 in December on the heels of a 1.0% rise the previous month. The November reading of 84.4 was the highest since December 2008, according to Chicago Fed figures.
Manufacturing in the five-state region lagged behind national factory activity, as the Federal Reserve Board's industrial production index was unchanged in December.
Both reports measure the number of hours worked during the month, although the U.S. Fed looks at other factors for its national index.
Regional manufacturing in December was 6.4% below year-ago levels, while national output fell 1.4%.
The Chicago Fed looks at the number of hours worked in Illinois, Indiana, Michigan, Wisconsin, and Iowa to determine changes in activity in four sectors.
Two of the sectors, auto and resource output, posted monthly declines. Steel and machinery production increased during the month.
Regional auto output edged down 0.2% in December following a 0.6% rise the previous month. For all of the U.S., auto production was up 0.3% and 3.5% below year-ago levels. For the Midwest, auto output was down 8.8% compared to December 2008.
Midwest resource sector output was 1.0% lower in December after a 1.3% rise in November. Nationally, it was unchanged for the month.
The Chicago Fed reported regional increases for wood and chemical production in December. Food, paper, and nonmetallic production fell during the month.
Resource production was still 4.6% higher compared to December of last year, while national output was up 5.8% during the one-year period.
Meantime, steel production rose 1.3% in the Midwest during December after a 2.5% boost in November. For the year, regional steel output was down 13.9% while nationwide output dropped 9.5%.
Midwest machinery production rose 0.6% in December, improving from a 0.5% loss in November. For the nation, machinery production was up 1.2% in December, but 3.8% lower compared to the year earlier period. Regional machinery output tumbled 15.8% from December 2008.
The Chicago Fed is scheduled to release its January Midwest Manufacturing Index March 18.
Copyright 2009 Dow Jones Newswires
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