According to the Institute for Supply Management, economic activity in the manufacturing sector expanded in March and the overall economy grew for the 107th consecutive month.

The March PMI decreased by 1.5 percentage points, landing at 59.3%. As the PMI fell, so did the new orders, production, employment, supplier deliveries and inventories indices. The new orders index still finished with a 61.9% reading, but that was down 2.3% from February.

“Demand remains robust, with the new orders index at 60 or above for the 11th straight month, and the customers’ inventories index at its lowest level since July 2011,” said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “The backlog of orders index continued a 14-month expansion with its highest reading since May 2004, when it registered 63%.”

The production index (61%) fell 1%, the employment index (57.3%) slipped 2.4%, supplier deliveries (60.6%) dipped by 0.5% and the inventories index landed at 55.5% following a 1.2% decline.

The prices index was the only metric to increase in March, reaching 78.1% after landing at 74.2% in February. That was the highest reading for the index since April 2011. The increase continued a now 25-month streak of increasing prices for raw materials.

“Consumption, described as production and employment, continues to expand, with indications that labor and skill shortages are affecting production output. Inputs, expressed as supplier deliveries, inventories and imports, were negatively impacted by weather conditions, Asian holidays, lead time extensions, steel and aluminum disruptions across many industries, supplier labor issues and transportation difficulties due to driver and equipment shortages,” Fiore said. “Export orders remained strong, supported by a weaker U.S. currency. The prices index is at its highest level since April 2011, when it registered 82.6%. In March, price increases occurred across 17 of 18 industry sectors. Demand remains robust, but the nation’s employment resources and supply chains are still struggling to keep up.”

Of the 18 manufacturing industries, 17 reported growth in March. The only industry reporting a decrease during the period is apparel, leather and allied products.