A recent report by MNI Indicators highlights a significant deceleration in the contraction rate of Chicago-area business activity for June.
The data reveals that the Chicago business barometer soared to 47.4 in June, up from 35.4 in May. Although the index remains below the 50 threshold, indicating continued contraction, the improvement surpasses economists' projections, who anticipated an increase to just 40.0.
This uptick marks a rebound after six consecutive months of decline, taking the barometer to its highest position since November 2023. Key drivers of this improvement include a significant rise in the new orders index, which surged by 16.9 points, returning to levels observed in the first quarter.
Additionally, the production index experienced an 11.0-point increase, reaching its highest point since December 2023. The employment index also showed a notable rise, climbing by 6.9 points to hit a three-month peak.
Conversely, the report notes a sharp decline in the prices paid index, which plummeted by 11.9 points, reaching its lowest level since June 2023.
