Chicago Business Barometer Surges to 41-Month High in May 2026

The Chicago Business Barometer surged in May to its highest level since January 2022, according to data released on May 29, 2026. The index, a key gauge of Midwest manufacturing and business conditions, rose to 58.4 from 52.1 in April, far exceeding economists’ forecasts of 53.0 and signaling the strongest expansion in over three years. The reading above 50 indicates growth in the region’s manufacturing sector, with components such as new orders and production showing sharp increases. Employment also ticked higher, though supplier delivery times lengthened, hinting at ongoing supply-chain bottlenecks amidst the rebound. The strong data contrasts with mixed signals from other national surveys and may influence the Federal Reserve’s policy outlook as it weighs the durability of economic growth against inflation risks.