The Institute for Supply Management released its manufacturing purchasing managers' index for the U.S. on Monday. The index declined to 52.7 in July from 53.5 in June, missing expectations for a gain to 53.6.

A reading above 50 indicates expansion, below indicates contraction.

The decline was partly driven by a fall in employment. The employment index dropped to 52.7 in July from 55.5 in June.

The production index remained unchanged in July.

The new orders index was up to 56.5 in July from 56.0 in June.

The prices paid index declined to 44.0 in July from 49.5 in June.