US Midwest Business Activity Picks Back Up, Tops Forecast

Business activity in the U.S. Midwest reaccelerated in May after contracting in April as measures of employment and new orders jumped, a report showed on Friday.

The Institute for Supply Management-Chicago business barometer rose to 58.7 from 49 in April, handily beating economists' expectations for 50.

A reading above 50 indicates expansion in the regional economy.

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The gauge of new orders climbed to 58.1 from 53.2, while the employment component shot up to its highest since January at 56.9 from 48.7.