The Chicago Business Barometer fell to 49.2 from 52.8 in March, dropping below the 50 threshold after three months of modest expansion.
The decline was driven by weaker order backlogs, new orders, supplier deliveries and production, while employment improved month on month but remained in contraction.
The setback follows 25 straight months of contraction ending in December 2025, as Chicago's labour market remains weak with 5.0% unemployment in March versus 4.3% nationally.
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