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U.S. manufacturing contracted for a third straight month in June and a measure of prices paid by factories for inputs dropped to a six-month low amid weak demand for goods, indicating that inflation could continue to subside, Reuters reports.
The Institute for Supply Management said on Monday that its manufacturing PMI slipped to 48.5 last month from 48.7 in May. A PMI reading above 50 indicates growth in the manufacturing sector, which accounts for 10.3% of the economy.
Economists had previously forecast that the PMI would climb, but manufacturing has been pressured by higher interest rates coupled with a softening demand for goods.
