NEW YORK (CNN/Money) - The latest reading on the state of U.S. manufacturing showed growth slowing, a survey of purchasing managers showed Thursday, in a report slightly below Wall Street forecasts.
The Institute for Supply Management's index came in at 61.1 for June, down from the 62.8 reading in May. Economists surveyed by Briefing.com were forecasting the index would fall to 61.5.
Any reading above 50 indicates growth in the manufacturing sector. Still the June reading was the weakest result for the index since October. And most of the index's components, such as those measuring new orders, production plans and order backlog, showed growth slowing compared to the May report.
For example the hiring index came in with a 59.7 reading for June, down from 61.9 in May, and while the percentage of those surveyed expecting their work force to shrink is still only 9 percent, that's up from 7 percent in May.
The one piece of good news for investors is that the prices paid component of the ISM index also showed some moderation in the June report, dipping to 81.0 from 86.0 reading in May. The percentage of those surveyed reporting they're paying higher prices fell to 66 percent from 74 percent in May.
Higher prices paid by businesses were one of the factors in the growing inflationary pressures that prompted the Federal Reserve to announce its first interest rate hike in more than four years Wednesday. But any sign that inflationary pressures could be lessening could raise hopes that the Fed's future rate hikes will be modest.
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