MNI Indicators’ report revealed on Friday that business activity in Chicago grew further in May, recording its eleventh straight month of expansion.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 75.2 in May, up from an unrevised 72.1 in April. This was the highest reading since November 1973.

Economists had forecast the index to drop to 68.0.

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

According to the report, Order Backlogs (+7.7 points, to the highest level since December 1983) and Order Backlogs (+7.5 points, hitting a 70-year high) demonstrated the largest gains, while Employment (-6.5 points) slipped back into contraction territory. Elsewhere, Production (-2.3 points) slowed and Inventories dropped to a 9-month low, while Supplier Deliveries (+5.9 points) rose to a 47-year high, indicating that supply chain constraints remain a serious problem. On the price front, Prices paid at the factory gate decreased 3.1 points in May, down from April’s 41-year high.