CHICAGO, Dec 29 (Reuters) - Manufacturing in the U.S.
Midwest fell to its weakest level in almost 12 years in
November as steel and machinery production dropped, the Chicago
Federal Reserve Bank said on Monday.

The Chicago Fed's Midwest factory index dropped 1.6 percent
to a seasonally adjusted 96.4, the lowest since January 1997,
from a downwardly revised 98.0 in October. The October reading
was originally reported at 98.6.

Compared with a year earlier, Midwest output was down 10.8
percent, worse than the 7.3 percent drop in national factory
output previously reported by the Fed.

Bucking its recent trend, Midwest auto sector production
rose 1.1 percent in November after falling 3.6 percent in
October and 6.2 percent in September.

Still, compared with a year earlier, the region's
automotive output was down 24 percent, while national auto
output fell 15.7 percent.

Regional steel output fell 4.3 percent for a second
straight month and was down 14.1 percent on the year, worse
than the 11.4 percent national decline.

Machinery sector output was off 2 percent in November after
falling 1.7 percent in October. Regional machinery output was
down 6.6 percent from a year ago, while national output fell
2.6 percent.

Resource sector output fell 1.9 percent in November after
rising 2.3 percent in October. All five resource subsectors --
food, chemicals, paper, wood and non-metallic minerals -- were
lower.

Compared with a year ago, Midwest resource output was down
4.8 percent in November while national output dropped 5.3
percent.

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.

Following is a breakdown of the index components and
percentage changes compared with previous months:

Nov Oct Nov 08/07
CFMMI -1.6 -1.2 -10.8
Auto 1.1 -3.6 -24.0
Steel -4.3 -4.3 -14.1
Machinery -2.0 -1.7 -6.6
Resources -1.9 2.3 -4.8

Index (2002=100)

Nov Oct
CFMMI 96.4 98.0
Auto 65.5 64.8
Steel 93.8 98.0
Machinery 121.6 124.1
Resources 109.0 111.1
(Reporting by Ros Krasny; Editing by Dan Grebler)