Mubasher: The US manufacturing sector grew at the slowest pace seen in more than two years, the Institute for Supply Management (ISM) said on Monday.

The ISM’s gauge of US factory activity declined by 0.4% to 51.7% last June, compared with the reading of 52.1% in May.

It is worth noting that a reading above 50% indicates growth.

The gauge for new orders stood at 50%, down 2.7 points from the prior month, reflecting that bookings are neither rising nor falling.

The decline in new orders is the probable outcome of a stalemate in trade talks with China, which prompted Washington to declare a fresh round of tariffs, despite US President Donald Trump rescinded the move over the weekend.

By 2:40 pm GMT, the US dollar index rose by 0.44% to 96.56.