The US manufacturing sector continued to grow in July, but at a slower pace for the second consecutive month, penalized by a sharp rise in service spending and a persistent shortage of materials prime.
The Institute for Supply Management said Monday that Its factory activity index in the country dropped to 59.5 last month, the lowest reading since January, from 60.6 in June.
A reading above 50 indicates growth in the manufacturing sector, which makes up 11.9% of the US economy. Economists interviewed by Reuters had expected the index to rise slightly to 60.9.
Government data from last week showed a sharp acceleration in service spending in the world’s largest economy in the second quarter, which helped raise the level of gross domestic product above the pre-coronavirus peak recorded in the fourth quarter of the year. 2019.
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