ISM Manufacturing Index Contracts for First Time in Three Years

ISM’s monthly service index dropped to a reading of 49.7, from 53.5 in May. Figures lower than 50 indicate contraction.

The production index fell 4.6 to 51, while new orders dropped 12.3 to 47.8, ISM said.

Economists had forecast than the index would drop to 52, Bloomberg reported.

ISM’s factory index measures manufacturing components of the economy.