A report released by MNI Indicators on Tuesday showed a significant rebound by its reading on Chicago-area business activity in the month of December.
MNI Indicators said its Chicago business barometer jumped to 43.5 in December after plunging to 36.3 in November. Economists had expected the index to rise to 39.5.
While the Chicago business barometer largely offset the steep drop seen in November, it remained below 50 for the twenty-fifth consecutive month, indicating a continued contraction.
The rebound by the headline index partly reflected a sharp increase by the new orders index, which shot up by 11.8 points, almost completely unwinding last month's fall.
The report said the production index also jumped by 9.6 points, climbing back above its 2025 average to reach its highest level since March.
The order backlogs index also surged by 12.3 points, although MNI Indicators noted the index remains below 40 and has only been above that weak mark for three months this year.
On the other hand, the supplier deliveries index fell by 3.6 points but remained above 50, while the employment index edged down by 0.6 points to its lowest level since May 2009.
While the prices paid index also dipped by 1.1 points, MNI Indicators said no respondents reported lower prices paid for the third consecutive month.