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Manufacturing shrinks for first time in 3 years

U.S. manufacturing shrank in June for the first time in nearly three years, a troubling sign that the economy is faltering. The Institute for Supply Management, a trade group of purchasing managers, said Monday that its index of manufacturing activity fell to 49.7. That's down from 53.5 in May and the lowest reading since July 2009, one month after the recession officially ended. Readings below 50 indicate contraction.

 

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