The Chicago Purchasing Managers' Business Barometer rose to 49.4 in June from 46.2 in May, the National Association of Purchasing Management-Chicago said Tuesday.
The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters predicted a 51.0 reading for the index.
"The Chicago Business Barometer recovered half of May's loss in June but stayed in contraction for the second consecutive month, with activity weakening further in Q2 from an already depressed Q1," according to a release.
"Aside from higher orders and output, there were few positives in the June Chicago Report," the release noted. "Amid weak demand in recent months, the Employment Indicator fell to the lowest since November 2009, standing below 50 for the second month in a row and pointing to a slowdown in the pace of hiring. Order Backlogs contracted at the fastest pace since September 2009 and was below 50 for the fifth month in a row, while Supplier Deliveries decreased more moderately but recorded a two-year low."
