Chicago Business Barometer Fell to 56.7 in June but Beat Expectations

Business activity in the Chicago area cooled in June, though it remained stronger than economists had expected. According to Jin10, a monthly survey released on Tuesday showed the Chicago Business Barometer slipped to 56.7 in June from 62.7 in May, when the index marked its highest level since January 2022. Economists surveyed by The Wall Street Journal had expected a reading of 55. A reading above 50 indicates expansion, and June marked the second consecutive month the index stayed above that threshold. The survey indicated the decline was driven by weaker new orders and lower production, while gains in supplier deliveries, order backlogs, and employment partly offset the drop. The new orders index fell 11.7 points after a strong rise in May. The production index declined 10.4 points, nearly erasing the prior month’s increase, but it remained in expansion territory for a sixth straight month. The prices paid index rose 1.6 points to its highest level since May 2022. Respondents cited higher oil and metal prices as the main drivers of the increase.