US ISM index in July reaches lowest level in two years

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Sharecast News | 01 Sep, 2015

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."

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