Manufacturing Index Dips To Lowest Level This Year

U.S. manufacturing activity slowed in July to its lowest level of 2010 as the Institute for Supply Management factory gauge fell to 55.5 from 56.2 in May, according to data released Monday.

Economists polled by Thomson Reuters predicted the index would fall to 54.1. Index readings above 50 suggest expansion.

New orders plunged to 53.5 in July from 58.5 in June, to reach their lowest level since June of 2009.

“Manufacturing industries throttled back on production in July for the third consecutive month, as the growth of new orders slowed,” said Brian Bethune, chief U.S. financial economist at IHS Global Insight.

“A moderate slowdown in forward momentum was expected, and that is what we are seeing here,” Bethune added.

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