Manufacturing Contracts in June

Washington, DC, July 2, 2012 -- U.S. manufacturing contracted in June for the first time since July 2009, the Institute for Supply Management said Monday.

The ISM dropped to 49.7% from 53.5% in May. Economists were expecting a reading of 52.3%.

The new-orders index dropped 12.3 percentage points in June, registering 47.8% and indicating contraction in new orders for the first time since April 2009.