Chicago PMI falls back in March amid supply chain issues
A widely-followed gauge of factory sector activity fell back a bit more quickly than expected in March, reaching its lowest level in a year.
Market News International's Chicago manufacturing sector purchasing managers' index slipped from a reading of 61.9 in February to 57.4.
Economists had projected a reading of 57.4.
"Compared to March last year, the Barometer was up 0.5%. On the quarter, the Barometer was down on Q4 2017 but Q1's outturn was still the second-best calendar quarter result since Q2 2014 and the best first quarter outturn since 2011," MNI said in a statement.
March's reading put an end to six straight quarters of increases, although the quarterly average for a gauge of prices paid contained in the same report rose to its strongest since the third quarter of 2011, MNI said.
According to the survey compiler, the chief reasons for the half in the index's upward trend were falls in suubindices measuring output and new orders.
"Troubles higher up in firms’ supply chains are restraining their productive capacity and higher prices are being passed on to consumers. On a more positive note, firms remain keen to expand their workforce," said Jamie Satchi, Economist at MNI Indicators.