Business activity in the Chicago region contracted at a faster pace in May, surprising analysts who had expected improvement. The Chicago purchasing managers index fell to 34.9 in May from 40.1 in April, according to a survey of corporate purchasing managers released Friday. Economists surveyed by MarketWatch had expected the index to rise to 42.0, building on gains in April. Readings below 50 indicate overall business contraction. The Chicago PMI is considered a leading indicator to the national Institute for Supply Management manufacturers' survey to be released on Monday. The ISM index improved in April to 40.1. This was taken by many as a sign that the meltdown in manufacturing was ending.
