Forexpros - Manufacturing activity in the U.S. fell more-than-expected in July, industry data showed on Monday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 50.9 in July, compared to June's reading of 55.3.
Analysts had expected the ISM index of purchasing managers to decline to 54.8 in July.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that the ISM index of manufacturing prices declined significantly more-than-expected in July, dropping to 59.0 from 68.0 in June, worse than the expected decline to 64.0.
The New Orders Index printed 49.2, indicating contraction for the first time since June of 2009, when it registered 48.9.
Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee said, "Despite relief in pricing, several comments suggest a slowdown in domestic demand in the short term, while export orders continue to remain strong."
Following the release of the data, the U.S. dollar was up against the euro, with EUR/USD shedding 0.73% to trade at 1.4292.
Meanwhile, U.S. equity markets erased gains following the report. The Dow Jones Industrial Average slumped 0.55%, the S&P 500 index fell 0.7%, while the Nasdaq Composite index dropped 0.6%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
