By Scott Kanowsky
Investing.com -- U.S. manufacturing activity slowed for the second straight month in July as firms remain wary of a weakening economic outlook and supply challenges despite signs of a cooldown in red-hot inflation, the Institute for Supply Management said on Monday.
The ISM Purchasing Managers Index fell to a fresh two-year low of 52.8%, down from 53% in June. It remained safely above the 50-point level, indicating growth in the sector, and was above analyst estimates of 52%.
The reading has been in expansion territory for more than two years now.
"Panelists are now expressing concern about a softening in the economy, as new order rates contracted for the second month amid developing anxiety about excess inventory in the supply chain," said ISM's Tim Fiore in a statement.
However, Fiore noted that price rises have eased "dramatically" in July.