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2025-07-31 22:28:12
[New Orders Grow Sharply, Chicago Business Activity Recovers Stronger Than Expected] Institutional analysis shows that business activity in the Chicago region continued to contract this month, but the pace of contraction slowed significantly, suggesting the US economy remains resilient despite ongoing tariff uncertainty and high inflation. A survey released Thursday showed that the Chicago Business Barometer jumped from 40.4 in June to 47.1 in July, significantly exceeding expectations for 41.7. Despite the improvement, the largest monthly increase in over a year, the index remains below 50, indicating that economic activity remains in contractionary territory. The Chicago Business Barometer last crossed 50 at the end of 2023. This month's rebound in business activity was primarily driven by a sharp increase in new orders, which reached their highest level in more than three years, indicating continued strong demand in the region. However, other sub-indicators offered less optimistic results, with employment remaining stable and prices paid declining.
