MNI Indicators’ report revealed on Friday that the expansion of business activity in Chicago slowed this month.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 58.7 in March, down from an unrevised 64.7 in February.

Economists had forecast the index to fall to 61.

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

Of the major sub-components of the Barometer, employment and supplier deliveries both increased, albeit marginally. Production and new orders pulled back from last month but were appreciably above their respective January levels. Meanwhile, order backlogs shrank the most, with the indicator falling into contraction territory for the first time since January 2017.