Tempe, AZ, July 3, 2006--The manufacturing sector grew at a slower than expected pace in June, the Institute for Supply Management reported Monday.
The ISM index fell to 53.8% from 54.4% in May. Economists expected an increase to 54.9%. Readings over 50% indicate expansion in the factory sector.
The new orders index rose to 57.9% in June from 53.7% in May. The prices paid index slid to 76.5% from 77.0%.
"Although the rate of growth slowed slightly, renewed strength in June's New Orders Index provides encouragement for the third quarter," said Norbert Ore, head of the ISM's survey committee.
