The disappointing July 2011 report on manufacturing is the 1st. major reading on how the economy performed in the past month. July's dismal economic growth for the month suggests that the bad news could extend into the July - September (3rd. quarter).
The economy expanded at a dismal 1.3 % annual rate in the April - June (2nd. quarter) period after an even worse 0.4 % January - March (1st. quarter) rate.