NEW YORK (Reuters) - Oil fell more than three percent to below $73 a barrel yesterday, its biggest one-day slide in nearly four weeks, as weak manufacturing data from China and the US fueled concerns about economic growth.

China's manufacturing in June grew at the slowest pace in months on government actions to cool the property market and curb bank lending. In the US, the Institute for Supply Management barometer of manufacturing activity fell much more than expected to 56.2.

US crude for August delivery fell $2.68, or 3.54 percent, to settle at $72.95 a barrel, the lowest close since June 8 and its biggest one-day percentage loss since June 4.

Falling in tandem with base metals, gold and equity markets, oil prices declined for a fourth straight session. The drop extended the 9.7 percent slide of the second quarter, the first quarterly decline since 2008.

ICE Brent fell $2.67 yesterday to settle at $72.34 a barrel.

"I think oil is reflecting general negative commodity market sentiment after weaker-than-expected China PMI data overnight," said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt.

Markets fell early, after China's official purchasing managers' index (PMI) fell to a weaker-than-expected 52.1 in June, the lowest since February, from 53.9 in May.

The markets fell further after the US government said initial jobless claims unexpectedly rose last week. Markets already were anxious about employment data ahead of the June non-farm payrolls report today. A Reuters survey has forecast a jobs loss of 110,000, the first decline of 2010.

The ISM report also disappointed markets, as did data showing pending sales of previously owned US homes plunged a record 30 percent in May to an all-time low.

The US dollar index fell 1.58 percent and the S&P 500 stocks index fell 0.51 percent at 3:31 p.m. EDT.

Oil prices retreated on Wednesday after the government reported a surprise US gasoline inventory rise last week. Distillate stocks also rose more than forecast.

Crude stockpiles fell two million barrels, more than the expected decline of 900,000 barrels, and the government report showed Cushing, Oklahoma, crude stocks shed 795,000 barrels to 36 million barrels.

Energy provider Genscape said on Thursday that Cushing stocks fell 285,000 in the week to Tuesday.