The US manufacturing sector grew at a slower pace in June, benefiting from a weaker dollar and business investment, according to the Institute for Supply Management.
The ISM manufacturing index dipped to 53.8% in June from 54.4% in May. The figure overturned analysts' consensus forecast of a rise to 55%.
The index indicates the manufacturing economy grew in June for the 37th consecutive month, while the overall US economy grew for the 56th consecutive month, the ISM said in a statement. Readings above 50 in the index indicate expansion.
Among component indexes in the ISM report, new orders rose to 57.9% in June from 53.7% in May. Production fell to 55.1% from 57.2%. The employment reading of new hiring in industry declined to 48.7% from 52.9% in May.
The rise in prices cooled slightly to an index reading of 76.5% from 77% in May.
'Manufacturing growth continued in June, and although the rate of growth slowed slightly, renewed strength in June's New Orders Index provides encouragement for the third quarter,' said ISM survey chief Norbert Ore.
'The sector is benefiting from the weaker dollar and business investment. While energy and raw material prices are still a concern, our members indicate that they are coping with the challenges and generally see their businesses in a continuing growth mode,' he added.
