The U.S. manufacturing sector disappointed expectations that an upturn was at hand as the National Association of Purchasing Management's July report (PMI) showed renewed weakness centered in employment and inventories, according to Survey Chair Norbert Ore. The purchasing managers' index came in at 43.6, showing a sharper contraction in manufacturing activity compared to the once promising 44.7 in June. Ore expects the PMI to return to its pattern of the first five months of the year, lateral movement in the low to mid 40s.