The Institute for Supply Managment's Purchasing Mangers' Index today reflected contraction in the U.S. manufacturing sector. PMI slipped to 49.7 in June from 53.5 the month prior; pre-report expectations were for a slide to just 52.0. (Readings above 50 reflect expansion and those below 50 reflect contraction in the manufacturing sector.) This is the first time the index has reflected contraction since July 2009.
New orders tumbled 12.3 percentage points to 47.8. The production index was at 51 and the employment index registered 56.6. The price index for raw materials declined signficantly to 37.
The panel cited softening demand due to uncertainty in Europe and China as the culprits for the dismal manufacturing data.