The Chicago Purchasing Managers' Business Barometer dropped to 47.6 in February from 55.6 in January, 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.
"The barometer's decline was led by an 18.5 drop in production, which completely reversed January's near 16 point gain, pushing it back into contraction," according to a release. "New orders also fell sharply and order backlogs slipped further into contraction, a situation that has persisted for a year. Employment also declined significantly, leaving it at the lowest since November 2009 and the fifth consecutive month below 50."
Economists polled by Thomson Reuters predicted a 53.0 reading for the index.
