New York City business activity expanded at a slower pace in August than in July as the current business conditions index fell to 51.4 in August from 55.2 in July, the Institute for Supply Management-New York's Report on Business index, released Wednesday, indicated.

A reading above 50.0 indicates expansion.

The report's six-month outlook index dipped to 61.3 from 61.7. The NY-BCI increased to 560.5 from 559.8.

The prices paid composite index rose to 56.4 from 51.4, the quantity of purchases composite index gained to 47.5 from 45.7, employment grew to 55.0 from 53.8, the revenues index slipped to 50.0 from 51.7, and the expected demand jumped to 65.0 from 59.7.

A third of businesses surveyed reported no impediments, while "skilled labor shortage" and "working capital shortage" were the next two most popular answers, although both were cited by less businesses than in the prior survey. Working capital shortages were mainly attributed to "shortfall in revenue."

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