US ISM index in July reaches lowest level in two years
Updated : 16:19
US manufacturers grew in August at their slowest pace in over two years, figures released on Tuesday showed.
The Institute for Supply Management revealed its manufacturing index declined from 52.7% to 51.1% in August, falling below the 52.2% reading analysts had expected.
The sub-index monitoring new orders fell 4.8 points to 51.7%, the lowest since May 2013, while the employment gauge edged 1.5 points lower to 51.2%.
"The export index lost 0.5 points to 46.5%, an indication of the tougher conditions faced by US firms that are exposed to foreign markets," said analysts at Barclays.
"The weaker-than-expected headline reading and broad-based softness in the August manufacturing ISM suggest that the goods-producing sector is likely to remain subdued in the third quarter."