(WSJ) — The U.S. manufacturing sector contracted in June for the first time since July 2009 as new demand crashed, according to data released Monday by the Institute for Supply Management.

The ISM’s manufacturing purchasing managers’ index plunged to 49.7 last month from 53.5 in May. A reading above 50 indicates expanding activity.

Economists surveyed by Dow Jones Newswires had expected the June PMI to slip only to 52.0.

“Comments from the panel range from continued optimism to concern that demand may be softening due to uncertainties in the economies in Europe and China,” the ISM report said.