US manufacturing almost flat in June
US manufacturing growth slowed to an almost flat pace in June, a new survey has shown.
The US Institute for Supply Management said its index of national factory activity fell to 50.9 from 55.3 in June, coming in lower than expectations for 54.9.
A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 means expansion.
“These are the types of numbers that are consistent with what we saw with the GDP numbers,” said Keith Hembre, chief economist at Nuveen Asset Management in Minneapolis.
“Absent a governmental shock, we would dredge forward with this stagnant economic performance. We’ll be mired in this one to two per cent (growth) environment we have been in.”
The shock fall came as its new orders index fell to 49.2 from 51.6 while prices paid were down to 59 from 68.
The ISM’s employment index fell to 53.5 from 59.9.