US Manufacturing Contracts for 4th Consecutive Month in June

A quarter of the manufacturing sector’s GDP is ‘strongly contracting,’ said a business expert.

Ford Mustangs go through assembly at the Ford Flat Rock Assembly Plant in Flat Rock, Mich. Bill Pugliano/Getty Images

The U.S. manufacturing sector’s economic activity shrank for the fourth straight month in June as businesses tackled tariff concerns, the Institute for Supply Management (ISM) said in a July 1 statement.

While ISM’s Purchasing Managers’ Index (PMI) rose 0.5 percentage points in June from May, it remained at 49 percent, below the 50 percent threshold. A PMI reading below 50 percent is an indication that industries in the manufacturing sector are generally contracting.