CHICAGO, Dec. 30 (UPI) -- The Purchasing Management Association of Chicago said Thursday its index of area business activity fell to 61.2 in December from 65.2 in November.

In November, the index fell to 65.2 from 68.5 in October.

A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates a contraction.

The Chicago survey is watched closely for clues to the index of the Institute for Supply Management. The ISM December survey will be released next Monday.

The Chicago index is based on a survey of purchasing managers in northern Illinois and northwestern Indiana, one of the largest industrial areas in the United States.

The report showed the employment index fell to 49.1 in December from 60.8 in November while the new orders index fell to 64.5 from 70 in November.