Economic Growth Slows, Manufacturing Picks Up

The Chicago Federal Reserve Bank reports its Manufacturing Activity Index climbed to plus 38 in May, up from plus 26 in April—a sign of strengthening factory output. However, the CFSEC Non-manufacturing Activity Index fell to minus 5, compared to plus 16 the month before, reflecting a slowdown in sectors like services and retail. The Chicago Fed’s broader Survey of Economic Conditions Activity Index dropped to plus 12, down from plus 20, indicating economic growth is slowing, though still running above its typical pace. Taken together, these figures point to a mixed picture for the Chicago area’s economy in May.