MNI Indicators’ report revealed on Friday that business activity in Chicago expanded this month, following twelve consecutive months of contraction.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 51.9 in July, up from 36.6 in June. That was the highest reading since May 2019. Economists had forecast the index to increase to 43.9.

A reading above 50 indicates improving conditions, while a reading below this level shows worsening of the situation.

According to the report, New Orders and Production recorded their largest monthly gains in July, while Supplier Deliveries fell to the lowest level since January 2020.