Economic activity in the US manufacturing sector accelerated in July at a slower rate than in June, according to the Institute for Supply Management’s manufacturing index, released today.

ISM’s manufacturing index fell in July to a reading of 58.1 from June’s reading of 60.2.

Readings above 50 generally indicate improving conditions.

The employment portion of the index rose in July to 56.5 from June’s reading of 56.0, representing growth in employment for the 22nd consecutive month. Of the 18 manufacturing industries, 13 reported increased employment and two reported decreased employment: Primary metals; and plastics and rubber products.

“Employment maintained a modestly strong level of expansion and supported production growth during the month,” said Timothy Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Respondents continued to note labor-market issues as a constraint to their production and their suppliers' production capacity.”