Obama's 'Fine' Economy Not Doing So Well

(Reuters) -- U.S manufacturing grew in June at its slowest pace in 11 months and hiring in the sector slowed as overseas demand for U.S. products waned, an industry survey showed on Thursday.

The number of Americans filing new claims for unemployment benefits was also little changed last week, according to the U.S. Labor Department.

Financial information firm Markit said its U.S. "flash" manufacturing Purchasing Managers Index fell to 52.9 from 54.0 in May. The June reading was the lowest since last July although it stayed above 50, indicating expansion in activity.

For the second straight month, weaker demand from Europe and large emerging markets such as China dented sales. Markit said U.S. manufacturers reported the second largest decline in new export orders since September 2009.

The index's new orders component fell to 54.1 from 54.6.

Manufacturing has been one of the strongest links in an otherwise frail U.S. economic recovery, but Markit said weaker overseas demand may be starting to slow hiring in the sector.

The employment component fell in June to 53.1, reflecting the weakest rate of hiring in eight months. It stood at 54.3 at the end of May.

The number of Americans filing new claims for unemployment benefits was also little changed last week, according to the U.S. Labor Department.

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