A slowdown in the pace of growth in demand contributed to the modest drop by the barometer, as the new orders index fell in December after surging in November. However, MNI Indicators said November's order book strength did translate into higher output in December, with the production index rising to an eleven-month high. MNI Indicators said inflationary pressures on firms continued to ease in December, as the prices paid index fell for the fifth consecutive month and by the biggest margin in almost four years.