Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Manufacturing activity slows in June

By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- Manufacturing activity expanded for the 11th straight month in June, according to a purchasing managers' survey released Thursday, but the rate of expansion slowed more than economists expected.

The Institute for Supply Management's (ISM) index of U.S. manufacturing dropped to 56.2 in June from 59.7 in May. The reading came in much lower than the slight decrease to 59 economists had expected, according to a Briefing.com consensus survey.

Despite the slowdown in growth, levels higher than 50 signal manufacturing growth, while readings below 50 indicate contraction.

"We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"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," he added.

The decline in manufacturing growth in June was largely due to a slowdown in new orders and production, the report showed.

ISM's new orders index dropped to 58.5 in June from 65.7 in April, driven by contraction in the machinery and wood products industries. The institute's production index fell to 61.4 from 66.6, led by declines in the wood products and apparel industries.

Overall, only three of the 18 manufacturing industries surveyed reported slower growth in June, while thirteen reported accelerated in growth.

Apparel and leather products, wood products and machinery all posted slower gains. Activity expanded most in the plastics and rubber products, transportation equipment, printing activities and computer and electronic industries. To top of page

Index Last Change % Change
Dow 15,973.84 313.66 2.00%
Nasdaq 4,337.51 70.67 1.66%
S&P 500 1,864.78 35.70 1.95%
Treasuries 1.75 0.10 6.33%
Data as of 9:49pm ET
Company Price Change % Change
Bank of America Corp... 11.95 0.79 7.08%
General Electric Co 28.26 0.81 2.95%
Cisco Systems Inc 25.11 0.43 1.74%
Chesapeake Energy Co... 1.59 -0.19 -10.67%
Freeport-McMoRan Inc... 5.53 0.64 13.09%
Data as of 4:15pm ET
Sponsors

Sections

Investors need someone they can bring home to mother instead of bad boys (or girls) that may make their heart beat faster. Boring beats bold in this market. Here are 10 dependable stocks we love. Southwest (ticker symbol: LUV) is one. More

Cheap oil and slow global growth may not be the only culprits of the global market turmoil. There's growing concern that central banks are spooking the markets too. More

Eastern Illinois University laid off 198 staff members this week, and the college president is blaming the state government. More