The Chicago Purchasing Managers' Business Barometer fell to 62.6 in June from 65.5 in May, the National Association of Purchasing Management-Chicago said Monday.
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.
Economists polled by Thomson Reuters predicted a 63.0 reading for the index.
"Softening in the key orders components was partially offset by a surge in production, lengthening in supplier deliveries and faster expansion in employment," according to a press release. "The Barometer's strength during Q2 was underpinned by strong rises in both new orders and production. In June, a fall in new orders from a seven month high in May led the barometer's decline, although it remained well above the 50 mark, confirming continued strong demand. Order backlogs also weighed negatively on business activity and declined from May's three year high. While both components contributed negatively to the barometer in June, they remained well above their 10 year averages."
