The Chicago Purchasing Managers' Business Barometer fell to 55.8 in July from 56.8 in June, the National Association of Purchasing Management-Chicago said Friday.
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.
"The MNI Chicago Business Barometer fell 1 point to 55.8 in July from the 1½-year high of 56.8 in June, led by a fall in new orders," according to a release. "Smaller declines were seen in production and order backlogs, which offset a strong increase in the employment component."
Economists polled by Thomson Reuters predicted a 54.1 reading for the index.
"The Barometer's three-month average, though, which provides a better picture of the underlying trend in economic activity, rose to 54.0 from 52.2 in Q2, the highest since February 2015," according to the release.
