US Manufacturing Growth Slows down

05 July 2006

WASHINGTON - US manufacturing grew slower than expected in June, hit by high energy and raw material prices. The Institute for Supply Management's manufacturing index for the last month dipped to 53.8 from May's 54.4.

Despite the fall, analysts welcomed the figures which suggest the economy is not over-heating and could help persuade the Federal Reserve not to further raise interest rates in August.