Chicago Manufacturing Activity Falls on Fuel Concerns

Click here to write a Letter to the Editor.

anufacturing growth in the Chicago unexpectedly contracted in August, its first contraction in more than two years, the National Association of Purchasing Management-Chicago said in its monthly report issued Wednesday.

APM’s business barometer fell to 49.2 from 63.5 in July, the group said. Economists had predicted the index would dip to 61, Bloomberg reported.

Readings above 50 signal expansion. July’s level had been the 27th consecutive month of continued growth in the region.

Record energy prices that made some companies cautious about the outlook for growth may have restrained production in the region, Bloomberg said.

The new orders index fell to 46.5 from 69.6, the production index dropped to 56.2 from 70.5 and the employment index dipped to 51.7 from 56.1.

Chicago is a major center of U.S. manufacturing, which is one of trucking’s largest and most important customers.