Investing.com - Manufacturing activity in the Chicago-area fell more than expected in August, dampening optimism over the U.S. economic outlook, industry data showed on Wednesday.
In a report, the Institute for Supply Management (ISM) said its Chicago purchasing managers’ index decreased by 4.3 points to a seasonally adjusted 51.5 this month from a reading of 55.8 in July. Analysts had expected the index to drop 1.8 points to 54.0 in July.
On the index, a number above 50.0 indicates an expansion, while below indicates contraction.
The ISM indicated that four of the five Barometer components fell between July and August and the drop in the overall indicator was led by a large setback in Order Backlogs, heading back into contraction, and a deceleration in New Orders.
Although in a positive sign, Employment increased, hitting a 16-month high.
“Economic activity slowed down into the summer, suggesting June’s momentum was only a temporary revival in activity,” said Lorena Castellanos, senior economist at MNI Indicators that helps elaborate the data.
“Overall, it wasn’t a rosy month,” Castellanos noted, although she pointed out that the trend in July through August growth rates were less weak than the one seen earlier in the year.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.12 from 96.21 previously.
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