The Institute for Supply Management released its Chicago purchasing managers' index on Friday. The Chicago purchasing managers' index climbed to 55.6 in January from 42.9 in December, exceeding expectations for an increase to 42.9.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

The increase was driven by a rise in production and in new orders. The production index posted a double digit growth in January, while the new orders index was up to 58.8 from 38.6.

The employment index rose moderately.

"While the surge in activity in January marks a positive start to the year, it follows significant weakness in the previous two months, with the latest rise not sufficient to offset the previous falls in output and orders," Chief Economist of MNI Indicators Philip Uglow said.