July 16 (Bloomberg) -- Copper futures in New York fell the most in two weeks on concern that a slowing global economy will limit demand for metal used in homes, cars and appliances. U.S. manufacturing contracted in June by the most in a year, and second-quarter growth slowed in China, according to separate reports this week. China and the U.S. are the world’s top metals users. Before today, copper prices slumped 10 percent this year. “The fears of a double-dip recession are still out there,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “We’re not going to see a whole lot of upside from copper in the near term.” Copper futures for September delivery fell 6.6 cents, or 2.2 percent, to $2.946 a pound at 9:53 a.m. on the Comex in New York. A close at that level would be the biggest drop since July 1 and leave prices down 3.5 percent this week. The metal extended losses today after a Labor Department report showed the cost of living in the U.S. fell in June for a third straight month. The consumer-price index dropped 0.1 percent. “People are still worried about deflation and what that will mean for the commodities,” Zeman said. On the London Metal Exchange, copper for delivery in three months lost $140, or 2.1 percent to $6,540 a metric ton ($2.97 a pound). Aluminum, zinc, nickel, lead and tin prices also fell. --With assistance from Timothy R. Homan in Washington. Editors: Steve Stroth, Daniel Enoch. To contact the reporters on the story: Millie Munshi in New York at mmunshi@bloomberg.net; Anna Stablum in London at astablum@bloomberg.net. To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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