According to the ISM’s monthly report on business, the ISM index dipped to 56.2 in June from 59.7 in May.
Economists polled by Thomson Reuters predicted the index would fall to 58.5.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion. The closely watched prices paid index fell to 57.0 from 77.5. The employment index was at 57.8, down from 59.8 the prior month.
The production index decreased to 61.4 from 66.6, the new orders index fell to 56.0 from 62.0, the supplier deliveries index slipped to 57.3 from 61.0, the export orders index decreased to 56.0 from 62.0, and the imports index remained unchanged at 56.5.
The inventories index increased to 45.8 from 45.6, the customers’ inventories index rose to 38.0 from 32.0, and backlog of orders dropped to 57.0 from 77.5.
