A survey has shown that the US manufacturing sector grew for the 11th consecutive month in June, but at a slower pace than expected.
The Institute of Supply Management (ISM) said its manufacturing index stood at 56.2, down from 59.7 in May.
The reading - which compiles managers' reports on everything from new orders to stock inventories - was well below market expectations for 59. A figure above 50 indicates an expanding manufacturing sector.
The ISM's Norbert Ore said the slowdown was to be expected after months of robust growth. 'Comments from the respondents remain generally positive, but expectations have been that the second half of the year will not be as strong in terms of the rate of growth, and June appears to validate that forecast,' he added.
Separate figures from the US Labor Department showed that initial claims for jobless benefits rose to 472,000 in the week ending June 26, a bigger than expected increase of 13,000 from the previous week.
