Chicago-area business activity unexpectedly contracted at a slightly faster rate in the month of February, according to a report released by MNI Indicators on Tuesday.
MNI Indicators said its Chicago business barometer edged down to 43.6 in February from 44.3 in January, with a reading below 50 indicating a contraction.
The modest decrease surprised economists, who had expected the Chicago business barometer to inch up to 45.0.
The unexpected dip by the Chicago business barometer partly reflected a steep drop by the production index, which plunged by 10.2 points, more than reversing January's rebound.
The employment index also slid a further 4.7 points into contractive territory, slumping to its lowest level since June 2020.
MNI Indicators said the prices paid also sank 7.2 points, returning to late 2022 levels after having briefly surged in January.
Meanwhile, the new orders index increased 3.0 points, reaching its highest level since last August but continuing to indicate a contraction.
The inventories subcomponent was little changed after having declined into year-end, with supplier issues again cited as grounds for higher stock levels.
