According to the latest Manufacturing ISM Report On Business, economic activity in the manufacturing sector expanded in May for the third consecutive month, while the overall economy grew for the 84th consecutive month.

The report was issued by Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

Holcomb said that the May PMI came in at 51.3%, which is a 0.5 percent increase from the April reading of 50.8%.

The New Orders Index and Production Index both fell, with New Orders registering at 55.7%, down from 55.8%, while Production dipped from 54.2% in April to 52.6% in May. Although the New Orders Index fell, 14 of 18 reporting industries recorded an increase in new orders in May. In April, 15 industries reported an increase. Only 12 of 18 industries reported an increase in production in May, down from 15 in April.

While the Employment Index stayed the same (49.2%), the Prices Index jumped by 4.5%, rising from 59% in April to 63.5% in May.

Inventories of raw materials slipped to 45%, a decline of 0.5 percentage points.