NEW YORK (Reuters)-the speed of business activity in the Midwest United States slowed slightly in October as the new orders diminished, although the jobs measure rose to its highest level in six months, the report showed on Monday.
The Institute for Supply Management-Chicago business barometer slipped to 58.4 from 60.4 the previous month, falling short of expectations 59.0, according to a Reuters poll. Reading above 50 indicates expansion in the regional economy.
Gauge new orders fell to 38.1 from 40.6, but components work index rises to highest level since April, rising to 62.3 from 60.6.
“Dip in the headline sentiment index reflected in order … but remember that two months ago (new orders) is at 56.9, so progress has been made,” Ian Shepherdson, Chief U.S. economist at high frequency economics, wrote in a note.
The report comes days before a national survey of manufacturing Institute for Supply Management. Economists said the survey did not change their expectations for Tuesday’s ISM report, which is expected to show the speed of growth in the sector picked up this month.