U.S. manufacturing improved both nationally and in the Midwest region last February, as the industry continues its gradual recovery from the deep hits suffered after the 2008 financial crisis, according to Chicago Fed's Midwest Manufacturing Index released Monday.

The Chicago Fed Midwest Financial Index (CFMMI) rose 1 percent in February over January and 10.1 percent year-on-year, Federal Reserve Bank of Chicago said.

Nationally, the Federal Reserve Board's Industrial Production Index for Manufacturing rose 0.4 percent in February, and 5.4 percent over the same time last year.

A strong performance in the automotive sector was one of the main forces driving manufacturing's February gains, as regional auto production increased 2.2 percent in February and a striking 18.7 percent year-on-year.

Nationally, auto production increased 0.9 percent in February and 12.9 percent year-on-year.

Regional manufacturing in the machinery and steel sectors also improved in February, increasing 1.2 percent and 0.9 percent respectively. These were up 10.9 percent and 13.9 percent respectively over the same period last year, and national machinery and steel production were likewise above 2011 levels.

Resource manufacturing was the only sector that did not post a monthly gain, as resource manufacturing both regionally and nationally decreased 0.2 percent in February.

However, resource manufacturing was slightly up over the same time last year, rising 2.5 percent regionally and 1.5 percent nationally.

Altogether, the Chicago Fed Midwest Manufacturing Index improved in February to a seasonally adjusted level of 91.7, compared with the pre-crisis 2007 level of 100.

After the devastating effects of the financial crisis and its massive impact on the U.S. manufacturing, particularly in the auto industry, the CFMMI had dropped to around 68 in mid-2009.

Although the CFMMI is still down 8.3 percent compared with its 2007 level, Midwest Manufacturing has made strong gains since 2009 and even since September 2011, when the CFMMI registered at 85.2.

Manufacturing has thus been one of the U.S. industries most championed by President Barack Obama as evidence of the U.S. economic recovery, and on Friday the U.S. Department of Labor further reported that manufacturing had posted some of the strongest gains in March employment, adding 37,000 jobs.

According to the Chicago Fed, the CFMMI is a monthly estimate of regional manufacturing output classified by the four major sectors of automotive, machinery, steel and resource manufacturing. The Midwest region includes the Chicago Fed District states of Illinois, Indiana, Iowa, Michigan and Wisconsin.