The Chicago Purchasing Managers' Business Barometer rose to 55.6 in January from 42.9 in December, the National Association of Purchasing Management-Chicago said Friday.
This was the largest monthly gain in a year. The index contracted seven times in 2015.
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.
"The latest increase followed weakness in the fourth quarter with the Barometer falling to 42.9 in December, a 6-1/2 year low amid sharp declines in New Orders and Production," according to a release. "Four out of the five components of the Barometer increased on the month, led by double digit and all time record gains in both new orders and order backlogs. The former increased to the highest level in a year. Production also increased sharply to the highest since January 2015."
Economists polled by Thomson Reuters predicted a 45.0 reading for the index.
