Tempe, AZ, United States (4E) – American manufacturing activity grew at a slower rate than anticipated in June, raising questions about the health of the economy, according to data from the Institute for Supply Management (ISM) released Tuesday.
Tuesday’s report showed that the ISM purchasing managers index (PMI) declined to 55.3 in June, compared with a 55.4 reading in May. Analysts had forecast the manufacturing PMI to rise to 55.8 last month.
A reading above 50.0 in the index indicates expansion in the manufacturing sector, and below 50 indicates contraction.
The index for new orders posted a 2.0 point gain to 58.9 from May’s 56.9 reading, signaling growth in new orders for the 13th month in a row. The production index stood at 60.0, lower by 1.0 point from May’s 61.0 reading.
The measure for employment expanded for the 12th straight month in June, rising to 52.8, the same level of growth recorded in the prior month.