US factory activity slips

US manufacturing activity eased in July amid shrinking order backlogs and declining employment, while an unexpected drop in construction spending in June suggested second-quarter economic was probably even weaker than reported last week. The Institute for Supply Management's report on Monday said its index of national factory activity slipped 0.6 percentage point to a reading of 52.6 last month. The index has now increased for five straight months. In a separate report, the Commerce Department said construction spending declined 0.6 per cent to its lowest level since June 2015 after dipping 0.1 per cent May. June marked the third straight month of declines in outlays. Economists polled by Reuters had forecast construction spending rising 0.5 per cent in June after a previously reported 0.8 per cent drop in May.