Signs of recovery in US economy

US manufacturing expanded in July, though at a slower pace, indicating a gradual improvement that could help the economy emerge from a weak first half of the year.

The Institute for Supply Management’s index cooled to 52.6 from a one-year high of 53.2 a month earlier, the group’s report showed yesterday. Readings above 50 indicate growth.

Factories cut back on employment even as orders and production remained strong last month, indicating producers are focused on cost-cutting as the economy struggles to gain speed.