American manufacturing growth slowed in June as new orders contracted, even though price increases showed signs of slowing, according to an industry survey released Friday.

The Institute for Supply Management said its manufacturing index fell to 53 per cent from 56.1 per cent in May, showing growth slowed significantly even though it stayed above the 50-per cent threshold indicating expansion for the 25th consecutive month.

That was the lowest level for the index since June 2020 during the pandemic downturn.

Prices showed signs of easing, but the drop in the overall index reflected new orders entering contraction territory, falling a whopping 5.9 points to 49.2 per cent, the report said.