Business activity in Chicago is still expanding, but at a slower pace.
The MNI/ISM purchasing manager’s index (PMI) for April came in at 50.4, down from 53.6 in March.
Economists had forecast a PMI of 52.6, according to Bloomberg. A reading above 50 indicates expansion.
A drop in new orders to the lowest level since December dragged down the headline barometer. Backlogs also fell to a four-month low.
There were signs of inflationary pressure, as prices paid rose to the highest level since November 2014.
The report said a growing number of panelists were worried about the impact of higher interest rates on their business growth and capital investment plans.
“Against a backdrop of softer domestic demand and the slowdown abroad, panelists are now more worried about the impact a rate hike might have on business than they were at the same time last year,” said Phillip Uglow, chief economist at MNI Indicators.
This is the final regional reading on manufacturing and services we’re getting ahead of ISM and Markit Economics’ manufacturing PMIs on Monday.