While Chicago-area business activity saw continued growth in the month of August, a report released by the Institute for Supply Management - Chicago on Friday showed that the pace of growth slowed by more than economists had been anticipating.
The ISM Chicago said its business barometer fell to 53.0 in August from 53.7 in July, although a reading above 50 indicates continued growth. Economists had been expecting the business barometer to edge down to a reading of 53.5.
Even though the headline index fell by more than anticipated, a number of subsidiary indexes increased compared to the previous month.
The production index climbed to 57.4 in August from 54.5 in July, while the new orders index rose to 54.8 from 52.9.
The report also showed that the employment index rose to 57.1 in August from 53.3 in July, indicating an acceleration in the pace of job growth in the Chicago area.
On the other hand, the orders backlogs index tumbled to 41.7 in August from 52.8 in July, with the reading below 50 indicating a contraction.
The supplier deliveries index also dropped to 49.9 in August from 53.3 in July, while the inventories index edged down to 51.2 from 52.6.
With regard to inflation, the prices paid index rose to 57.0 in August from 54.7 in July, pointing to an acceleration in the pace of price growth.
Next Tuesday, the Institute for Supply Management is scheduled to release its report on national manufacturing activity in the month of August.
by RTT Staff Writer
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