US factory activity slumps in June

Washington: US manufacturing activity hit more than a 2-1/2-year low in June, with a measure of new orders received by factories tumbling, amid growing anxiety over the escalation in trade tensions between the United States and China.

Other data on Monday showed construction spending unexpectedly fell in May as investment in private construction projects dropped to its lowest level in nearly 2-1/2 years.

The Institute for Supply Management said its index of national factory activity dropped to 51.7 last month, the lowest reading since October 2016, from 52.1 in May. A reading above 50 indicates expansion in the manufacturing sector, which accounts for about 12 per cent of the US economy.

Economists polled by Reuters forecast the index at 51 in June.