Growth in Chicago-area business activity slowed in the month of August, according to a report released by MNI Indicators on Friday.
MNI Indicators said its Chicago business barometer dipped to 63.6 from a revised 65.5 in July, although a reading above 50 still indicates growth. Economists had expected the index to fall to 63.0.
The report said the drop by the business barometer reflected a softening in supplier deliveries, order backlogs and employment, which offset gains in production and new orders,
“The MNI Chicago Business Barometer continues to signal solid business sentiment, despite easing for the first time in five months, with growth in output and demand holding up well,” said Jamie Satchi, Economist at MNI Indicators.
MNI Indicators said the prices paid indicator eased in August, but remained above the 80-mark for just the second time since late-2008.
Satchi said, “Inflationary pressures look set to continue, potentially bleeding into consumer prices, with over 60% of firms reporting that they have passed on higher input costs to customers in recent months, and others foreseeing doing so in the near future.”