NEW YORK — A report on manufacturing activity shows the sector contracted less than expected in June, posting its best showing since last August and another sign that a recovery may be near.

Manufacturing sectors overseas also are rebounding a bit, according to new reports, but other U.S. economic data were mixed. Construction spending fell more than expected in May, while pending home sales edged up.

The Institute for Supply Management, a trade group of purchasing executives, said its manufacturing index registered 44.8 in June, up from 42.8 in May. Analysts polled by Thomson Reuters had expected a reading of 44.5.

"A slow recovery for manufacturing is forming," said Norbert Ore, chair of the ISM's manufacturing business survey committee.

A reading below 50 indicates contraction. June's reading marks the 17th straight month of deterioration in manufacturing.

Still, there is an encouraging pattern in recent ISM manufacturing reports. This is the second straight month that the index has been above 41.2 after seven consecutive declines.

The ISM says a reading above that level is consistent with expansion in the overall economy — even though the manufacturing sector itself is still shrinking.

"This latest gain suggests the recession may finally have ended at the close of the second quarter, a mere 19 months after it started," said Capital Economics' analysts. "However, there is little evidence that this tepid recovery will turn into anything much stronger."