MNI Indicators’ report revealed on Friday that business activity in Chicago picked up for the second straight month in August, albeit at a slower pace than in July.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 51.2 in August, down from 51.9 in July. Economists had forecast the index to increase to 52.0.

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

According to the report, Order Backlogs was the only category to show a monthly decline, cooling 1 point in August after a strong increase in the previous month. Meanwhile, Supplier Deliveries recorded the largest gain, rebounding 4.2 points after three consecutive months of decline. Elsewhere, Production improved further in August, increasing 1.4 points to the highest level since June 2019, while New Orders edged up to a one-year high, and employment ticked up 0.9 points but remained in contraction territory.