Washington, Aug 4 (IANS): Economic activity in the US manufacturing sector witnessed slower growth in July, an industry survey said.

The manufacturing index, also known as the purchasing managers index (PMI), registered 52.7 in July, down from June's reading of 53.5, Xinhua news agency quoted the Institute for Supply Management (ISM) as saying on Monday.

A reading above 50 percent indicates the sector is generally expanding, while a reading below the ratio indicates contraction.

The ISM's new-orders index rose to 56.5 in July, compared to June's reading of 56, and the production index increased two points from June to 56 in July. The employment index fell 2.8 points from June's reading of 55.5 to 52.7 in July.

Businesses were uncertain about international markets and the impacts of the decline in oil prices, said the survey.

Eleven of the 18 manufacturing industries reported growth in July, while five industries reported contraction in the month, including wood products, primary metals, plastics and rubber products, chemical products and machinery industries.