US manufacturing sector contracts in June for 3rd straight month

By Ovunc Kutlu

ISTANBUL (AA) - The US manufacturing sector contracted in June for the third 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 48.5% in June – down 0.2 percentage points from 48.7% in May.

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 49.2%. While a reading above 50 indicates growth, below that level shows contraction.

The figure also marked the 19th contraction in the last 20 months.

"U.S. manufacturing activity continued in contraction at the close of the second quarter," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. "Demand was weak again, output declined, and inputs stayed accommodative."

"Demand remains subdued, as companies demonstrate an unwillingness to invest in capital and inventory due to current monetary policy and other conditions," said the economist.