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Business activity in the Chicago area declined for the sixth month in a row in May, as demand continues to weigh amid a slowing economy, according to a survey published Friday

The Chicago Business Barometer, compiled by MNI Indicators, dropped to 35.4 in May from 37.9 in April, defying expectations for an increase to 41.1.

The reading is the lowest since May 2020, MNI said, suggesting that activity contracted at a faster pace in May as it came in further below the 50 threshold that separates expansion from contraction.

The indicator was dragged lower by falls in new orders, order backlogs and to a lesser extend employment. Production and supplier deliveries offset some of the slump, MNI said.

The barometer is compiled through surveys of firms in the Chicago area in order to assess business conditions and components including new orders, order backlogs, production, supplier deliveries and employment.

Prices paid, however, edged down in May, suggesting some easing of inflationary pressure.