MNI Indicators’ report revealed on Wednesday that business activity in Chicago continued to expand in June, albeit at a slower pace than in May.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 66.1 in June, down from an unrevised 75.2 in May. This was the lowest reading since February.

Economists had forecast the index to drop to 70.0.

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

According to the report, Order Backlogs (-14.1 points) demonstrated the largest drop, while Supplier Deliveries (+4.2 points to the highest level since March 1974) posted the only increase. Elsewhere, New Orders languished markedly, declining to a three-month low in June and Employment slipped to the lowest level since January as firms saw difficulties in finding new staff. On the price front, Prices paid at the factory gate jumped to the highest level since December 1979.