ECONOMY

Manufacturing Sector Shrinks, Labor Market Improves: The U.S. manufacturing economy slipped back into recessionary territory in June, according to a private survey, offering no hope that factories will soon add to payrolls now at a 28-year low. An index based on a survey of purchasers of raw materials used by the nation’s factories dropped sharply in June to 48.3%, from 51.1% a month earlier. A reading below 50% indicates a shrinking manufacturing economy. But illustrating the mixed condition of the economy, the government also reported improvement in the labor market last week and a slight increase in May construction spending.