The pace of business activity in the U.S. Midwest increased in August and input prices hit a nine-month high.

The Institute for Supply Management-Chicago business barometer rose to 53 from 52.3 in July, matching economists' expectations. A reading above 50 indicates expansion in the regional economy.

Prices paid rose to 65.2, a nine-month high, from 63.6. The gauge of new orders, however, rose to 57.2 from 53.9, while the employment component slipped to 54.9 from 56.6.