By Ovunc Kutlu
ISTANBUL (AA) - The US manufacturing sector in June contracted for the eighth consecutive month, according to a report released Monday by the Institute for Supply Management (ISM).
The ISM manufacturing purchasing managers' index (PMI) came in at 46% last month -- 0.9 percentage points lower than the 46.9% recorded in May.
While a reading above 50 indicates growth, one below that shows contraction.
The market expectation for the index, based on replies from purchasing and supply executives in more than 400 industrial firms, was to come in at 47.2% in June.
"The June composite index reading reflects companies continuing to manage outputs down as softness continues and optimism about the second half of 2023 weakens," said Timothy Fiore, the chair of ISM Manufacturing Business Survey Committee, adding the figure indicates "a faster rate of contraction."
The new orders index failed to leave the contraction zone in June, recording a tenth consecutive month in that territory, by coming in at 45.6% -- three percentage points higher than 42.6% in May.
The production index in June managed to fall to the contraction territory with a reading of 46.7%, which was a 4.4-percentage point decrease from May's figure of 51.1%.