The Federal Reserve Bank of Chicago has issued a new report on manufacturing in the Midwest states of Michigan, Iowa, Illinois, Indiana and Wisconsin. The report shows that manufacturing output in those states has sunk to the lowest levels in 12 years.
The rate of decline in this region was far worse than the decline in the rest of the country:
The Federal Reserve Board’s industrial production index for manufacturing (IPMFG) decreased 1.5% in November. Regional output in November was down 10.8% from a year earlier—lower than the 7.3% decrease in national output.
But oddly, regional production in the auto sector actually increased, while output declined significantly faster than national auto production:
The Midwest’s auto sector production moved up 1.1% in November after falling 3.6% in
October. The nation’s auto output increased 1.5% in November. The Midwest’s automotive output was down 24.0% in November relative to its year-ago value, and the nation’s auto output was down 15.7%.
With all three major auto companies reducing production in December and January due to falling demand for new cars, those numbers can be expected to get significantly worse in the coming months.