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U.S. manufacturing activity fell the most in three years for the eighth straight month

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U.S. manufacturing activity contracted for the eighth straight month in June, falling to its lowest level in more than three years as measures of production, employment and input prices retreated.

The Institute for Supply Management manufacturing indicator fell to 46 in June from 46.9 in the previous month, the lowest since May 2020, data showed Monday. It remained below 50 – indicating a contraction in manufacturing activity – the longest since 2008-2009.

The production indicator of the ISM Manufacturing Index is also at its lowest level since May 2020, indicating that demand for goods remains weak. The new orders indicator contracted for the 10th consecutive month. The decline in backlog may help explain the pullback in manufacturing employment measures.