According to the Institute for Supply Management, economic activity in the manufacturing sector expanded in April, and the overall economy grew for the 108th consecutive month.

Despite the economic growth, the April PMI did fall by 2%, landing at 57.3%. The new orders index slipped to 61.9%, production was down 3.8% to 57.2%, the employment index decreased by 3.1% to 54.2% and the inventories index also experienced a decline, going from 55.5% in March to 52.9% in April.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the new orders index at 60 or above for the 12th straight month, and the customers’ inventories index remaining at low levels. The backlog of orders index continued expanding, with its highest reading since May 2004, when it registered 63%,” said Timothy R. Fiore, chair of the Institute for Supply Management Manufacturing Business Survey Committee. “Consumption, described as production and employment, continues to expand, but has been restrained by labor and skill shortages.

Meanwhile, the supplier deliveries index moved up to 61.1% from 60.6% and the prices index once again took a step forward, reaching 79.3%, which marks a 1.2% increase from March and the 26th-straight month with higher prices for raw materials.

“Inputs, expressed as supplier deliveries, inventories and imports, declined overall, due primarily to inventory reductions likely led by supplier performance restrictions. Lead time extensions, steel and aluminum disruptions, supplier labor issues and transportation difficulties continue,” Fiore said. “Export orders remained strong. The prices index is at its highest level since April 2011, when it registered 82.6 percent. In April, price increases occurred across 17 of 18 industry sectors. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle.”

Of the 18 manufacturing industries, 17 reported growth in April, including transportation equipment, machinery and primary metals.