The Institute for Supply Management released its Chicago purchasing managers' index on Friday. The index climbed to 54.7 in July from 49.4 in June, exceeding expectations for an increase to 50.5.
A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.
The rise was partly driven by increases in the production and new orders. The production index rose by 12.0 points to 61.8 in July, while new orders index also increased.
The employment index remained below 50.