The Chicago Business Barometer, also known as the Chicago PMI, fell to 52.1in July from 56 in the prior month. It is the lowest reading since August 2020.
Economists polled by the Econoday forecast a steady 56 reading.
The index has tumbled almost 20 points from last year’s June reading.
Readings above 50 indicator improving activity.
The index is produced by the ISM-Chicago with MNI. It is released to subscribers three minutes before its release to the public at 9:45 am Eastern.
The Chicago PMI is the last of the regional manufacturing indices before the national ISM data for July is released on Monday. The prior five regional manufacturing surveys were mixed but showed deceleration.
The U.S. factory sector is clearly slowing as new orders dry up.
In June, the Institute for Supply Management’s barometer of American factories fell to a two-year low of 53%. The July data will be released Monday.