US Midwest business activity revved up in August

The pace of business activity in the U.S. Midwest rose more than expected in August, a report showed on Friday.

Read MoreConsumers snap wallets shut as income growth slows

The Institute for Supply Management-Chicago business barometer came in at 64.3, up from 52.6 the prior month. Economists were looking for a reading of 56.0 in August.

It was the index's biggest monthly point gain since July 1983 and marked a sharp recovery from July's reading, which had marked a 13-month low.

Read MoreUS confidence rose in August, shaking off doubts

By CNBC. Reuters contributed to this report.