Manufacturers had their weakest growth in two years in July, a sign that the economy could weaken this summer, The Associated Press reports.
The Institute for Supply Management, a trade group of purchasing executives, said Monday that its index of manufacturing activity fell to 50.9 percent in July from 55.3 percent in June. The reading was the lowest since July 2009 — one month after the recession officially ended.
Any level above 50 indicates growth. The manufacturing sector has expanded for 23 straight months.
Still, new orders shrank for the first time since the recession ended. Companies slashed their inventories after building them up in June. Output, employment, and prices paid my manufacturers all grew more slowly in July.
The disappointing report on manufacturing is the first major reading on how economy performed in July. It suggests the dismal economic growth in the first half of the year could extend into the July-September quarter.
