Economic activity in the manufacturing sector expanded in June, and the overall economy grew for the 97th consecutive month, according to the latest Manufacturing ISM Report on Business.

The June PMI registered 57.8%, an increase of 2.9 percentage points from the May reading of 54.9%. The New Orders Index registered 63.5%, an increase of four percentage points from the May reading of 59.5%. The Production Index registered 62.4%, a 5.3 percentage point increase compared to the May reading of 57.1%. The Employment Index registered 57.2%, an increase of 3.7 percentage points from the May reading of 53.5%. The Supplier Deliveries index registered 57%, a 3.9 percentage point increase from the May reading of 53.1%. The Inventories Index registered 49%, a decrease of 2.5 percentage points from the May reading of 51.5%. The Prices Index registered 55% in June, a decrease of 5.5 percentage points from the May reading of 60.5%, indicating higher raw materials’ prices for the 16th consecutive month, but at a slower rate of increase in June compared with May.

Comments from the panel generally reflect expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace.

Of the 18 manufacturing industries, 15 reported growth in June in the following order: Furniture and Related Products; Nonmetallic Mineral Products; Paper Products; Machinery; Electrical Equipment, Appliances and Components; Chemical Products; Transportation Equipment; Computer and Electronic Products; Food, Beverage and Tobacco Products; Plastics and Rubber Products; Printing and Related Support Activities; Fabricated Metal Products; Wood Products; Miscellaneous Manufacturing; and Petroleum and Coal Products.

Three industries reported contraction in June compared to May: Apparel, Leather and Allied Products; Textile Mills and Primary Metals.