American Manufacturing Slows

U.S. factory activity contracted in June, the first slowdown since July 2009, according to the Tempe, Ariz.-based Institute for Supply Management.

ISM's manufacturing index slid to 49.7 from 53.5 in May. Any reading below 50 indicates contraction.

The research group's measure of new orders plunged to 47.8 in June from 60.1, the steepest month-over-month drop in more than 10 years. The gauge of prices tumbled 10.5 points to 37. Production and employment are still expanding, but more slowly, ISM says.