MNI Indicators’ report revealed on Friday that business activity in Chicago contracted this month.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 49.7 in June, down from an unrevised 54.2 in May. Economists had forecast the index to decrease to 53.1. This marked the first contraction in Chicago's activity since January 2017.

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

According to the report, Demand eased for the fourth time this year, while Production indicator hit a three-year low and Order Backlogs remained in contraction for the second consecutive month. At the same time, Inventories were on a rise, and Factory gate prices picked up for the second consecutive month.