The US manufacturing sector grew at a slightly slower pace in June after hitting the year`s highest level the prior month, the Institute for Supply Management said Tuesday.
The ISM`s manufacturing purchasing managers index dipped 0.1 point to 55.3 in June in the 13th consecutive month of growth in the sector. A reading above 50 indicates expansion.
The June PMI dip was unexpected. Analysts on average estimated a 0.4 point increase.
Nevertheless, the number was the second-highest of 2014, after May`s 55.4 peak.
It was also better than the 12-month average of 55.1, with 15 of the 18 manufacturing industries surveyed reporting growth in June.
New orders grew at a faster pace, while production and prices growth slowed. There was no change in employment.
"The manufacturing sector of the economy continues to show steady growth in 2014, which should positively contribute to GDP (gross domestic product) in the second quarter," said Jay Morelock of FTN Financial.
The fastest-growing industries were furniture and nonmetallic mineral products. The three reporting contraction were textile mills, chemical products, and plastics and rubber products.
"Business volume is increasing at a good pace and consumers appear to be spending more," said one respondent in the food, beverage and tobacco products industry.
"Another strong month overall," an executive in the computer and electronic products field said.
