MNI Indicators released a report on Tuesday showing Chicago-area business unexpectedly contracted at an accelerated rate in the month of April.

The report said the Chicago business barometer dropped to 37.9 in April from 41.4 in March, with a reading below 50 indicating contraction. Economists had expected the index to rise to 44.9.

With the unexpected decrease, the Chicago business barometer fell to its lowest level since November 2022.

MNI Indicators said the production index declined for the fifth conductive month and is now at similar levels to November 2022.

The new orders index also slid to its lowest reading since November 2022 amid an increase in respondents reporting fewer new orders.

The report said the employment index also tumbled by 8.5 points, more than reversing the rebound seen last month and hitting the second lowest level since the beginnings of the pandemic.

Meanwhile, MNI Indicators said the prices paid index jumped 6.7 points, reaching the highest level since
August 2023.