Investing.com - Manufacturing activity in the U.S. expanded at a slower rate than expected in June, dampening optimism over the health of the economy, industry data showed on Tuesday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 55.3 last month from a reading of 55.4 in May. Analysts had expected the manufacturing PMI to increase to 55.8 in June.
The New Orders Index registered 58.9, an increase of 2.0 points from the 56.9 reading in May, indicating growth in new orders for the 13th consecutive month. The Production Index registered 60.0, 1.0 point below the May reading of 61.0.
Employment grew for the 12th consecutive month, registering 52.8, the same level of growth as reported in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Following the release of the data, the U.S. dollar was lower against the euro, with EUR/USD rising 0.03% to trade at 1.3697.
Meanwhile, U.S. equity markets were higher after the open. The Dow rose 0.6%, the S&P 500 advanced 0.4%, while the Nasdaq 100 tacked on 0.7%.