Business activity increased in July after experiencing two-consecutive months of a slow momentum, according to a monthly survey of members of the Institute for Supply Management-Chicago.

The Chicago Business Barometer, a measure of manufacturing and non-manufacturing activity, rose to 62.3 from 59.1 in June. July marks the tenth consecutive month of a reading above 50, which indicates expansion.

Businesses reported that new orders caught up with expanding production, while order backlogs surged.

“The assumption is that suppliers are still cautious in regard to alleged recovery and thus, are not ramping up capacity to accommodate current increased demands,” a business owner commented on the survey.

The increase in activity comes on the day the government reported slow economic growth in the second quarter, ending on June 30th.