According to a report by the National Association of purchasing managers Chicago, the index of business activity in the manufacturing sector of the U.S. Midwest business barometer , ISM-Chicago) in August dropped to 51.5% against 55.8% in the previous month.
Analysts had forecast a decline to 54.1%.
The index represents results of poll of managers on purchases in industrial sector of Chicago. When calculating the index takes into account the state of production orders, price trends for manufactured products and the change in the volume of commodity stocks in warehouses. A reading above 50 points indicates an acceleration in the pace of development of the economy, while a reading below 50 points to contraction in economic activity.