Manufacturing expansion slows in June

Initial jobless claims were up more than expected on the eve of the June employment report, and contracts to buy existing homes fell 30 percent in May, after the April 30 expiration of a federal tax credit for homebuyers. 

"We are now 11 months into the manufacturing recovery, and given the robust nature of recent growth, it is not surprising that we would see a slower rate of growth at this time," said Norbert Ore, chairman of the Institute for Supply Management. 

"The sector appears to be solidly entrenched in the recovery."

Feedback from the industry is largely positive, "but expectations have been that the second half of the year will not be as strong in terms of the rate of growth, and June appears to validate that forecast."

The number of contracts for previously owned homes fell at a sharp 30 percent rate in May, double the forecast, the National Association of Realtors reported today.