U.S. Manufacturing Index Indicates Slower Growth In July

(RTTNews) - After reporting the strongest growth in U.S. manufacturing activity in over a year in the previous month, the Institute for Supply Management released a report on Monday showing that growth in the manufacturing sector slowed in the month of July.

The ISM said its purchasing managers index dipped to 52.6 in July from 53.2 in June, although a reading above 50 still indicates growth in the manufacturing sector. Economists had expected the index to come in unchanged.

The drop by the manufacturing index came after it hit its highest level since reaching 53.3 in February of 2015 in the previous month.

A downturn in employment in the manufacturing sector contributed to the decrease by the headline index, as the employment index fell to 49.4 in July from 50.4 in June.

The supplier deliveries index also tumbled to 51.8 in July from 55.4 in June, while the new orders index edged down to 56.9 from 57.0.

The ISM also said the prices index slid to 55.0 in July from 60.5 in June, indicating a slowdown in the pace of price growth.

On the other hand, the report said the production index climbed to 55.4 in July from 54.7 in the previous month.

The ISM is scheduled to release a separate report on activity in the service sector in the month of July on Wednesday.

The index of activity in the service sector is expected to rise to 56.5 in July after jumping to a seven-month high of 56.0 in June.