Chicago PMI slips to six-month low in February

BloombergEmployees prepare fabric for clothing at the 9B Apparel manufacturing facility in Los Angeles.

The numbers: Chicago PMI slipped in February to a reading of 61.9, a six-month low, from 65.7 in January.

1)#Chicago #Business #Barometer declines 3.8 points to 61.9 in Feb from 65.7 in Jan #chicagopmi pic.twitter.com/rZVJc18YXZ

What happened: Any reading over 50 indicates improving conditions, so despite the decline, the data indicates a strong level of activity. Firms did report a slower pace of incoming orders and output, MNI Indicators reported.

The big picture: U.S. manufacturing has been improving of late, and the Chicago region is particularly exposed to automakers whose fortunes have been helped by the need for replacements after the hurricanes.

What they're saying: "Disruptive weather conditions this month and large promotions at the back-end of last year appear to have weighed on demand and output in February, but despite the Barometer's broad-based decline activity remains upbeat," said Jamie Satchi, economist at MNI Indicators. One concern that came from the survey was the rising cost of input materials, he added.