Chicago factory activity strengthens in July

WASHINGTON (MarketWatch) -- Manufacturing activity in the Chicago region increased more than expected in July, based on data from the Chicago purchasing managers index released Friday. The index rose to 62.3 points from 59.1 in June, according to media reports. Economists surveyed by MarketWatch had expected the index to fall slightly. Readings over 50% indicate overall business expansion. The Chicago PMI is the last of a series of regional indicators that some economists say give clues to the national Institute for Supply Management manufacturers' survey, which will be issued Monday. Until the Chicago report, economists had expected the July ISM manufacturing composite to drop from June's reading of 56.2.