The Chicago Purchasing Managers Index (Chicago PMI), also known as Chicago Business Barometer, fell to 58.4 in October, amid restrained production and rising cost due to tariffs on China.

The index declined by 2.0 points from 60.4 in September to a six-month low, according to a statement released on Wednesday by the Institute for Supply Management Chicago.

The barometer is considered to be a leading indicator of the U.S. economy. It is made up of production, new orders, order backlogs, employment and supplier deliveries indicators and is designed to predict future changes in U.S. gross domestic product.

In October, Prices Paid, a gauge of input price pressures, remained locked in a historically elevated range. Some firms reported seeing higher unit prices on invoices for the first time, on the back of further import tariffs levied on China, while others said they expected shortages to push prices higher over the coming months.

"Production continues to be restrained by issues between firms and their suppliers, reflected by supplier deliveries at a 14-year high, while the latest raft of tariffs on Chinese goods appears to be exacerbating uncertainty across firms," said Jamie Satchi, economist at MNI Indicators, which compiles data for Chicago PMI on behalf of the Institute for Supply Management Chicago.

In a survey conducted by MNI Indicators in September, many U.S. firms complained that higher tariffs imposed by the U.S. administration hampered their production lines.

They said that tariffs continued to push prices higher alongside material shortages, while sourcing electrical components proved particularly difficult.