Manufacturing growth slows

TEMPE, Ariz., July 1 (UPI) -- U.S. manufacturing activity expanded for the 11th consecutive month in June, but the pace of growth slowed, the Institute of Supply Management said Thursday.

It was the second consecutive month the rate of growth declined. In May, the trade group's key indicator, the Purchasing Manager's Index, dropped from 60.4 to 59.7. In June the index fell to 56.2.

Numbers above 50 indicate growth.

In June, the new orders index dropped 7.2 percent, from 65.7 to 58.5. The production index fell from 66.6 to 61.4, a 5.2 percent drop. Employment fell 2 percent, from 59.8 to 57.8.

"We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time," said Norbert Ore, head of the Institute for Supply Management Manufacturing Business Survey Committee.

"Comments from 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," he said.