US ISM manufacturing PMI falls to 52.6 in July, misses expectations

The Institute for Supply Management (ISM) gauge of manufacturing activity showed a slower than expected pace in the sector in July.

ISM manufacturing index dropped to 52.6 in July from 53.2 the previous month, missing expectations of a more modest decline to 53.0. However, the index remained above the 50.0 threshold, which separates expansion from contraction.

The employment component fell to 49.4 versus 50.4 in June, while new orders index slid to 56.9 from 57.0. The Prices index also declined to 55.00 versus 60.0 expected and down from 60.50 in June.