Manufacturing in the midwest increased 1.1% in June, the Chicago Federal Reserve reported, rebounding from revised data showing a 1.4% drop in May.

The Chicago Fed Midwest Manufacturing Index was 94.1 (2007 = 100), with regional output up 11% from June 2011. The Midwest outpaced the Federal Reserve's national industrial production index, which showed manufacturing increasing 0.7% in June.

Production in the four sectors tracked by the Chicago Fed all increased:

Machinery production grew 2.9%, more than twice the national increase of 1.4% in June. Machinery production had decreased 0.5% in May. Regional machinery production was up 12.2% from a year ago while national machinery output has increased 7.3% from June 2011.

The automotive sector saw production rise 0.7% in June after declining 4.3% in May. Midwest auto production was up 21.9% from June 2011, compared to an increase of 15.2% for the nation.

The Midwest resource sector improved 0.5% in June, after dropping 0.9% in May. The food, wood, paper, chemical and nonmetallic mineral subsectors all increased production in June from the previous month. Compared to a year ago, resource output was up 2.1% in the region and 1.3% nationally.

Steel output was up 0.4% in June after a 0.6% increase in May. Nationally, steel output decreased 0.2% in June. Regional steel output was up 11% from June 2011, while national steel production was up 6.4%.