WASHINGTON (PNN) - August 1, 2011 - Manufacturers had their weakest growth in two years in July, a sign that the economy could further weaken this summer.

The Institute for Supply Management, a trade group of purchasing executives, said Monday that its index of manufacturing activity fell to 50.9% in July, from 55.3% in June. The reading was the lowest since July 2009 - one month after the government declared the recession had ended.

This latest report shows that despite government fabrications about an economic recovery, the country remains mired in the Second Great Depessison.

Any level above 50 indicates growth. The manufacturing sector has expanded for 23 straight months.

Still, new orders shrank for the first time since July 2009. Companies slashed their inventories after building them up in June. Output, employment, and prices paid my manufacturers all grew more slowly in July.

The disappointing report on manufacturing is the first major reading on how the economy performed in July. It suggests the dismal economic growth in the first half of the year could extend into the July-September quarter.

"The ISM manufacturing report for July is a shocker and strongly suggests that the disappointing performance of the economy in the first half of the year was not just temporary," said Paul Dales, a senior U.S. economist for Capital Economics.