The Chicago Purchasing Managers' Business Barometer fell to 50.3 in January from 53.9 in December, the National Association of Purchasing Management-Chicago said Tuesday.
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 55.0 reading for the index.
"Following a strong Q4, with the three-month average of the barometer at 54.3, the January reading made for a sluggish start to the first quarter of 2017. It was down 8.4% compared with January 2016's reading.," according to the release. "Three of the five components of the Barometer decreased, with only Order Backlogs and Supplier Deliveries recording gains in January."
