MNI Indicators’ report revealed on Friday that business activity in Chicago expanded in July at a faster pace than in June.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 73.4 in July, up from an unrevised 66.1 in June. This represented both a two-month high and the second highest pandemic-era reading.

Economists had forecast the index to drop to 64.6.

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

According to the report, Production (+8.8 points) recorded the largest gain in July, followed by New Orders (+5.4 points), while Supplier Deliveries remained unchanged. Elsewhere, Order Backlogs (+3.4 points) advanced, hitting a two-month high; Inventories (+5.1 points) also gained but remained in contraction territory. On the price front, Prices paid at the factory gate (-0.3 points) eased slightly but held at a historically high level.