The manufacturing sector grew in July at its slowest pace this year, the Institute of Supply Management (ISM) said on Monday. The ISM said that its index of national factory activity fell to 55.5 in July from 56.2 in June, while the average forecast by 60 economists surveyed by Reuters was 54.2. A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 means expansion. It was the third straight month of slower growth, and the lowest reading since December. New orders dropped to 53.5 from 58.5 in June, while the report's employment component rose to 58.6 from 57.8 in June. The inventories component in the report rose to 50.2 from 45.8 in June, while production declined to 57.0 from 61.4.
