Manufacturing
activity grew in June, rebounding from an unexpected contraction in May. This
is despite an industry report showing hiring in the sector was the weakest in
nearly four years.
According to a report released Monday by The Institute
for Supply Management (ISM), the index of national factory activity in June
rose to 50.9 from 49.0 in May, a touch above of expectations of 50.5. A reading
above 50 indicates expansion in the sector.
The gauge for new orders rose to 51.9 from 48.8, while production
jumped to 53.4 from 48.6, helping the overall index bounce back from May's
contraction - the first in six months.
But a measure of employment fell to 48.7, the lowest reading since
September of 2009. It stood at 50.1 in May.
That could feed concern about the strength of the U.S. recovery,
particularly now that the Federal Reserve has said it is considering scaling
back its massive stimulus program.
Economists polled by Reuters expect the broader U.S. economy to
have slowed to 1.7 percent in the second quarter, though most say it should
pick up steam in the second half.
The
economy grew at a 1.8 percent rate in the first three months of the year, with
consumer spending having grown less than initially thought.