Manufacturing rate of decline slows

TEMPE, Ariz., July 1 (UPI) -- U.S. manufacturing activity declined for the 17th consecutive month in June, although the rate of decline has slowed, a research group said Wednesday.

The Institute for Supply Management said the Purchasing Managers Index reached 44.8 in June, higher than the 42.8 mark set in May, but still below 50, which is the break even point.

Figures above 50 indicate growth. Figures below 50 indicate contraction.

The Production index reached 52.5 in the month, up from 46 in May. The Supplier Deliveries index also showed improvement at 50.6, compared to 49.8 the previous month.

Prices broke even at 50, but the Employment index still showed contraction at 40.7. A month ago, the Employment index showed a steeper decline at 34.3.

The critical New Orders index dropped in the month from 51.1 to 49.2.

"Manufacturing continues to contract at a slower rate, but the trends in the indexes are encouraging as seven of 18 industries reported growth in June," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"Most encouraging is the gain in the Production index, which is up 12.1 percentage points in the last two months," he said in a statement.