Purchasing managers in the Chicago area saw the nation's

Purchasing managers in the Chicago area saw the nation's economy growing at a slower pace to start the new year, a closely-watched index revealed Tuesday.The Institute for Supply Management-Chicago reported its Chicago Business Barometer slipped to a seasonally-adjusted 60.2 in January, from a downwardly revised 62.2 in December. The December index had been at 62.5 prior to annual recalculations released Thursday by ISM to adjust for seasonal factors.
The latest reading was weaker than expected. The consensus estimate of economists surveyed by Dow Jones Newswires projected January's barometer would hold at 62.2.
However, ISM-Chicago reported its three-month moving average for the barometer continued to trend higher, reaching 61.6, which is the highest level since June of last year.
January also marked the 28th consecutive month that the business barometer signaled economic expansion. Above-50 barometer readings indicate the economy is growing, while sub-50 readings reflect economic contraction.
The closely-watched employment index fell to 54.7 in January, from 59.2 in December, providing "further evidence of less pervasive economic growth," ISM-Chicago said in a news release.
Order backlogs contracted in January, sustaining its sharpest drop since November 2008. It fell to 48.3, from 57.3 in December. ISM Chicago said production was able to "catch up" because of declines in order backlogs and new orders.
ISM-Chicago's new orders index slipped to 63.6 in January, from 67.1 in December. The production index was at 63.8 in January, from 64.9.
Purchasing managers participating in the survey do business beyond the Chicago region, thus providing a snapshot of nationwide economic activity. The purchasing managers, according to ISM-Chicago, represent various sectors of economy including retail, manufacturing, and resources.
The business barometer is formerly known as the Chicago Purchasing Managers Index, or Chicago PMI.
Kingsbury International compiles the data for ISM-Chicago. Deutsche Boerse AG (DBOEF, DB1.XE) purchased Kingsbury's assets in June of last year.