NEW YORK (CNN/Money) - The manufacturing sector in the Chicago area, a key production region, showed growth well below Wall Street's estimates in June.
The Chicago Purchasing Managers' Index released Wednesday came in at 56.4, well below the 68 level hit in May. Economists expected the reading to show a reading of 64, according to a survey by Briefing.com.
Any level above 50 indicates growth, while a reading below 50 shows contraction.
The Chicago PMI is often seen as a barometer for the broader manufacturing sector in the United States, one that is shrinking, but still carries importance, especially in an election year.
The ISM index covering the whole country is scheduled to be released Thursday at 10 a.m. ET. It's seen coming in at 61.5, down from 62.8, according to the Briefing.com consensus.
The new orders component from Chicago area manufacturers posted a sharp decline to a seasonally adjusted 56.8 from 74.4 in May, and the production measure also fell to 53.9 in June from 71.1 the previous month.
Despite those declines, the prices paid index continued to rise to 84.5 from 80 in May, a signal about inflation that could lead the Federal Reserve to raise interest rates Wednesday for the first time in four years.
The employment component fell to 53.6 in June from 54.8 in May.
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