The Chicago Purchasing Managers' Business Barometer fell to 51.5 in August from 55.8 in July, "led by a large setback in Order Backlogs and a deceleration in New Orders," the National Association of Purchasing Management-Chicago said Wednesday.
The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
"Four of the five Barometer components fell between July and August," according to a release. "Only Employment increased, hitting a16-month high. The latest fall left the Barometer, New Orders and Production running at the slowest pace since May, when they all slipped below 50."
Economists polled by Thomson Reuters predicted a 54.3 reading for the index.
"Order Backlogs fell 14.5 points to 41.7, moving back into contraction territory to the lowest level since April. Backlogs were above 50 for only two months following a 16-month run of sub-50 readings. New Orders and Production also subtracted from the Barometer. Although both remained in expansion, they were much softer than at the end of Q2," according to the release.
