According to the latest data from the Institute for Supply Management, economic activity in the manufacturing sector expanded in July, and the overall economy grew for the 98th consecutive month.

Despite another month of expansion, the PMI did fall to 56.3% in July, down from the June reading of 57.8%. The new orders index also fell, landing at 60.4% after coming in at 63.5% in June.

Keeping with the downward trend, the production index finished at 60.6%, down 1.8% from June’s reading while the employment index fell 2% to 55.2% and the supplier deliveries index dropped 1.6% to 55.4%.

Meanwhile, the inventories and prices indices both rose, with inventories up 1% to 50% and prices up 7% to 62%. The increase in the prices index means not only did the price of raw materials increase in July, they did so at an accelerated rate compared to June.

“Comments from the panel generally reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in July compared to June, as well as supplier deliveries slowing (improving) and inventories unchanged during the period,” said Timothy R. Fiore, chair of the ISM manufacturing business survey committee.

Of the 18 manufacturing industries, 15 reported growth in July, including electrical equipment, transportation equipment and machinery.