Chicago, June 30--The Purchasing Management Association of Chicago index of area business activity fell to 56.4 in June on a seasonally adjusted basis from 68.0 in May.
In May, the index rose to 68.0 from 63.9 in April. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates a contraction.
The Chicago survey is watched closely for clues to the index of the Institute for Supply Management, which will be released tomorrow at 10 a.m. Eastern time.
The prices-paid index rose to 84.5 in June from 80.0 in May, while the employment index fell to 53.6 in June from 54.8 in May. The new orders index fell to 56.8 in June from 74.4 in May.
The Chicago index is based on a survey of purchasing managers in northern Illinois and northwestern Indiana, one of the largest industrial areas in the U.S.
