Chicago PMI falls less than expected

The Chicago purchasing manager's index for July slipped to 55.8 in July.

Economists had forecast that the business barometer fell to 54 from 56.8 during the month, according to Bloomberg. It remained above 50, the border between expansion and contraction.

After a surge in June, new orders and production fell a bit in July.

"On the upside, it was the first time since January 2015 that all five barometer components were above 50," said Lorena Castellanos, a senior economist at MNI Indicators.

"Another positive came from the Employment Indicator. Although it's still relatively weak, should July's increase hold then it could be read as a tentative sign of growing business confidence about economic growth ahead," she said.

Last month, the index rose to its highest level since January 201. Businesses also ended a seven-month run in contracting inventories.