(RTTNews) - A report released by MNI Indicators showed its reading on Chicago-area business activity decreased by more than expected in March but still indicated growth.
MNI Indicators said its Chicago business barometer slumped to 52.8 in March after climbing to 57.7 in February. Economists had expected the index to drop to 54.0.
While the Chicago business barometer fell by more than expected, the reading above 50 indicates the third straight month of growth.
The sharp pullback by the heading index partly reflected a steep drop by the employment index, which plunged by 12.8 points and returned to contractionary territory.
The production index also tumbled by 9.3 points after surging in the previous month, while the new orders slumped by 7.8 points but remained above 50 for the third straight month.
Meanwhile, the report said the prices paid index increased by 3.4 points, reaching its highest level since last December.
MNI Indicators said respondents noted that metals were already driving cost increases, and that geopolitical tensions have driven up other costs too.
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