The US manufacturing sector expanded for the 12th month in a row July, beating most analysts' expectations.
The Institute of Supply Management said its manufacturing index fell to 55.5%, from 56.2 in June, a smaller drop than predicted.
The reading - which compiles managers' reports on everything from new orders to stock levels - beat market expectations of 54.2%. A reading above 50% indicates an expanding manufacturing sector.
'July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries,' the ISM's Norbert Ore said in a statement.
Analysts said the survey showed that despite the third month in a row of slower growth, the sector would continue to expand at least in the short term.
