"We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time," said Norbert Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.
"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.
The decline in manufacturing growth in June was largely due to a slowdown in new orders and production, the report showed.
ISM's new orders index dropped to 58.5 in June from 65.7 in April, driven by contraction in the machinery and wood products industries. The institute's production index fell to 61.4 from 66.6, led by declines in the wood products and apparel industries.
Overall, only three of the 18 manufacturing industries surveyed reported slower growth in June, while thirteen reported accelerated in growth.
Apparel and leather products, wood products and machinery all posted slower gains. Activity expanded most in the plastics and rubber products, transportation equipment, printing activities and computer and electronic industries.
Home construction fails to lift recoveryManufacturing (ISM)
