Dow Jones Newswires | A sharp increase in steel production helped
boost manufacturing activity in the Midwest in April, the Federal
Reserve Bank of Chicago reported Thursday.

The Chicago Fed’s Midwest Manufacturing Index climbed 1.2 percent in
April, to 85.2, the highest reading since December 2008.

The March index was at 84.2, up 1.5 percent from the previous month, according to the Chicago Fed.

The latest data provide more evidence that the U.S. economy is in recovery mode.

The report was released on the same day that the government said the nation’s gross domestic product increased by a 3.0 percent annual rate during the first quarter.

All four of the major industrial sectors that make up the index increased during April, with steel output posting the sharpest gain.

Steel production was 2.9 percent higher in April, on the heels of a 2.2 percent increase in March. On an annual basis, Midwest steel production surged 15.8 percent, stronger than the 11.0 percent gain nationwide. In April alone, U.S. steel production was up 1.9 percent.

The regional index is based on the number of hours worked in 15 industries in the Chicago Fed’s five state district of Illinois, Michigan, Indiana, Wisconsin, and Iowa.

The index provides a regional comparison with the manufacturing component of the Federal Reserve’s national industrial production index, which was 1.1 percent higher in April.