The Chicago Fed Survey of Economic Conditions (CFSEC) Activity Index rose to -3 in May from -20 in April, indicating economic growth was near trend.

• The CFSEC Manufacturing Activity Index fell to -21 in May from -6 in April, while the Nonmanufacturing Activity Index increased to +11 from -23.

• 45% of respondents still expect a decrease in economic activity over the next 12 months despite a modestly improved outlook.
• Hiring pace and expectations improved but remained in contraction territory.

• Capital spending expectations declined further, with the index staying negative.

• Labor cost pressures were unchanged, and nonlabor cost pressures increased, though both indexes remained negative.