A monthly survey published Tuesday showed Chicago-area business activity cooled
in June but remained above expectations. The Chicago business activity index
fell to 56.7 from 62.7 in May; May’s reading was the highest since January 2022.
Economists surveyed by the Wall Street Journal had expected 55. Readings above
50 signal expansion; June was the second consecutive month above 50. The decline
was driven by drops in new orders and production, while gains in supplier
deliveries, backlogs and employment partly offset the fall. The new orders index
fell 11.7 points after a strong May increase. The production index slipped 10.4
points, nearly erasing the prior month’s gain but staying in expansion for a
sixth month. The prices-paid index rose 1.6 points to its highest level since
May 2022; respondents cited rising oil and metal prices as the main drivers.
