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2018.05.3110:45:00UTC+00Chicago Business Barometer Indicates Notably Faster Growth

A report released by MNI Indicators on Thursday showed business activity in the Chicago-area gained significant traction in the month of May.

MNI Indicators said its Chicago business barometer jumped to 62.7 in May from 57.6 in April, with a reading above 50 indicating growth. Economists had expected the index to inch up to 58.0.

"It had been a somewhat sluggish start to the year, perhaps unsurprising after the stellar end to 2017, but the MNI Chicago Business Barometer found a higher gear in May," said Jamie Satchi, Economist at MNI Indicators.

He added, "Although broad based, the rise was largely thanks to a rebound in demand and back-to-back growth in output."

The report said the production index notched another gain after breaking a run of three consecutive falls last month, rising to a three-month high.

The new orders index also increased in May, indicating the first sign of order book growth this year.

MNI Indicators said the two indicators account for the lion's share of the headline index, two thirds exactly, and stand 3.7 percent and 2.1 percent above their respective May 2017 levels.

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