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Chicago PMI falls less than expected

Jul 29, 2016, 19:15 IST

MNI Indicators

The Chicago purchasing manager's index for July slipped to 55.8 in July.

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Economists had forecast that the business barometer fell to 54 from 56.8 during the month, according to Bloomberg. It remained above 50, the border between expansion and contraction.

After a surge in June, new orders and production fell a bit in July.

"On the upside, it was the first time since January 2015 that all five barometer components were above 50," said Lorena Castellanos, a senior economist at MNI Indicators.

"Another positive came from the Employment Indicator. Although it's still relatively weak, should July's increase hold then it could be read as a tentative sign of growing business confidence about economic growth ahead," she said.

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Last month, the index rose to its highest level since January 201. Businesses also ended a seven-month run in contracting inventories.

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