US manufacturing mired in weakness; prices paid gauge hits six-month low

by Reuters

U.S. manufacturing contracted for a third straight month in June and a measure of prices paid by factories for inputs dropped to a six-month low amid weak demand for goods, indicating that inflation could continue to subside.

The Institute for Supply Management (ISM) said on Monday that its manufacturing PMI slipped to 48.5 last month from 48.7 in May. A PMI reading above 50 indicates growth in the manufacturing sector, which accounts for 10.3% of the economy.

Economists polled by Reuters had forecast the PMI climbing to 49.1. Manufacturing is being pressured by higher interest rates and softening demand for goods.

Government data last week showed manufacturing contracted at a 4.3% annualized rate in the first quarter, with most of the decline coming from long-lasting manufactured goods.

 

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