Manufacturing index shrinks less than expected - KWWL - Eastern Iowa Breaking News, Weather, Closings

Manufacturing index shrinks less than expected

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NEW YORK (AP) -- A report on manufacturing activity shows the sector contracted less than expected in June, and at the slowest pace since last August.

The Institute for Supply Management, a trade group of purchasing executives, says its manufacturing index read 44.8 in June. That's up from 42.8 in May.

A reading below 50 indicates contraction. June's reading marks the 17th straight month of deterioration in manufacturing.

Still, last month's tally was better than expected as analysts polled by Thomson Reuters expected the index to rise to 44.5.

The manufacturing index includes new orders, production, employment, inventories, prices, and export and import orders. It is based on a survey of the Tempe, Ariz.-based ISM's members.

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