The July flash reading of manufacturing conditions from S&P Global fell to 52.3 from 52.7 in June, slightly ahead of an expected reading of 52 in a survey compiled by Bloomberg.
The manufacturing index was the lowest in 24 months and follows mixed readings in the regional manufacturing sector readings from the New York and Philadelphia Federal Reserve banks.
The index for services conditions declined to a 47 print in July from 52.7 in June, compared with expectations for no change. The reading is the lowest in 26 months and suggests contraction in the sector.
The composite reading fell to 47.5 in July from 52.3 in June, also a 26-month low.