The 10 point decline to 52.6 in July was led by a "collapse" in the production and ordering components, say the report authors, leaving the production gauge barely in expansion territory. New orders - the most highly weighted component of the headline index - saw its largest decline since November. Backlogs fell into contraction territory.
The surprise fall calls into question the sustainability of the recovery, says MNI Indicators' Philip Uglow.
ETFs: TBT, TLT, TMV, IEF, TBF, PST, EDV, TMF, TTT, ZROZ, SBND, TLH, IEI, DTYS, TYO, DLBS, VGLT, UBT, UST, VGIT, TLO, TBX, GSY, SCHR, TENZ, DTYL, ITE, LBND, TYD, TYBS, TBZ, DLBL, FIVZ, DFVL, DFVS, TYNS