U.S. Manufacturing Growth Slows

July 1, 2010
ISM says slowdown was to be expected after months of robust growth.

For the 11th consecutive month, the U.S. manufacturing sector grew in June, but at a slower clip than expected, an industry survey said on July 1.

"The manufacturing sector continued to grow during June; however, the rate of growth... slowed when compared to May," said Norbert Or of the Institute of Supply Management (ISM).

The firm's manufacturing index, also known as the purchasing managers' index, stood at 56.2%, down from 59.7% seen in May.

The reading -- which compiles managers' reports on everything from new orders to stock inventories -- was well below market expectations of 59%.

The ISM's Or said the slowdown was to be expected after months of robust growth. "The sector appears to be solidly entrenched in the recovery."

"Comments from the respondents remain generally positive, but expectations have been that the second half of the year will not be as strong in terms of the rate of growth, and June appears to validate that forecast."

Copyright Agence France-Presse, 2010

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