Midwest Manufacturing Growth Slower than Expected in November

An economic snapshot of the manufacturing heavy U.S. Midwest fell after a steep drop in new orders.

The Chicago Business Barometer, formally known as the Chicago PMI, fell to 60.8 in November from 66.2 in October. Any reading above 50 signals expansion.

The new orders category decreased by 11.7 points to 61.9, leading the overall barometer to reverse nearly all of October's sharp increase.

"Following the sharp rise in the Barometer to a one year high in October it wasn't too surprising to see activity ease somewhat in November," said Philip Uglow, Chief Economist of MNI Indicators. "Overall the trend remains firm and activity looks set to pick up in Q4 from Q3."

The production subindex also expanded at a slower rate, while the employment indicator declined to its lowest level since March.