Manufacturing fell in June to 56.2 percent in June from 59.7 in May, according to a report issued today by the Institute for Supply Management. The numbers were below what many economists had forecast and the stock market fell after the report. The drop comes after three solid months of growth in manufacturing. This is the lowest monthly manufacturing number since December.
A reading above 50 indicates expansion.
“The sector appears to be solidly entrenched in the recovery," said Norbert Ore, head of the ISM's 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."
Manufacturing also fell in China and Europe. China’s purchasing manager’s index fell to 52.1 in June from 53.9 in May. Factory output in 16 countries in Europe fell to 55.6 in June from 55.8 the month before.