Chicago Manufacturing Index Increases Slightly in June

The National Association of Purchasing Management-Chicago said Monday that its factory index rose to 52.5 in June from 52.2, a reading analysts said suggests a slow recovery for the nation's factories.

Readings greater than 50 mean business expanded at the region's factories.

Manufacturing accounts for about 20% of U.S. economic production and is one of trucking’s largest and most important customer segments.

The Chicago index is based on a survey of purchasing managers in northern Illinois and northwestern Indiana, one of the largest industrial areas in the United States.

Economists had forecast the index to rise to 53, Bloomberg reported. However, until rising stock prices, the lowest interest rates in more than four decades and increased consumer confidence translate into more spending, factories may be reluctant to boost production much, Bloomberg said.

The Chicago purchasers' index of new orders rose to 54.8, the highest since February, from 54.6. The production index fell to 56.5 from 60.5, while the index of order backlogs increased to 45.8 from 44.4.

In addition, the group's employment index edged up to 43.8 from 43.6 in May.

The Chicago report precedes Tuesday’s Institute for Supply Management's statistics on nationwide manufacturing.