- Paul Dales, senior U.S. economist at Capital Economics
U.S. manufacturing contracted in June for the first time since 2009 as new orders tumbled, a sign the world's largest economy is cooling. The Institute for Supply Management's index of national factory activity fell to 49.7 from 53.5 a month before.
"Clearly this is the biggest sign yet that the U.S. is catching the slowdown that is well underway in Europe and China," said Paul Dales, senior U.S. economist at Capital Economics in London.
"But it is worth remembering that a reading of below 47 is required to be consistent with another recession. This means the index is still consistent with a growing economy, albeit at an annualized rate of a little below 1 per cent," he added.
"Manufacturing is gearing down," said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York. "It's consistent with the idea that the uncertainty is weighing on businesses. Europe is taking a bite out of the export sector."
© Dukascopy Bank SA