WASHINGTON (MarketWatch) — Manufacturing activity shrunk in June for the first time in three years as new orders dried up, according to a key report released Monday that points to a deteriorating U.S. economy.

The Institute for Supply Management’s manufacturing index fell to 49.7% from 53.5% in May, in the first reading below the 50% line indicating expansion or contraction since July 2009. Read “Recession now much more likely.”

The report was worse than the MarketWatch-compiled forecast of 52.3%.

• Posted: 2012 Jul 03 at 05:45
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