ISM Manufacturing PMI Drops to 49.7, Near a 3-Year Low - 2.7.2012

The Institute of Supply Management Manufacturing Index in U.S dropped to 49.7 for June from 53.5 in May, declining by 3.8 per cent. Investors projected the ISM Manufacturing would be at 52.0 for June however the release showed a lower than projected figure. Since the Index was lower than the 50 mark for the first time after July 2009, there was contraction in the economic activity of the manufacturing sector in June as the ISM reported today. Moreover, the ISM reported that Prices Index also dropped from 47.5 in May to 37 in June, a more than 10 points decline.