US Manufacturing Activity Contracts for 8th Straight Month, Hits 3-Year Low

US manufacturing activity contracted for the eighth consecutive month in June, reaching its weakest level in over three years. The Institute for Supply Management's manufacturing gauge fell to 46, indicating shrinking activity, with declines in production, employment, and input prices. The index of new orders contracted for the tenth straight month, while order backlogs shrank. The prolonged stretch of readings below 50 is the longest since 2008-2009. The report reflects weak demand for merchandise and a pullback in manufacturing employment, as Americans limit spending on goods and face the impact of high inflation.