According to the Institute for Supply Management, economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 105th consecutive month.

Although the economy grew once again, the January PMI slipped slightly dropping to 59.1% from the 59.3% December reading. The new orders index was hurt a bit more, falling 2% to 65.4%. The production and employment indices each fell as well, dropping 0.7% and 3.9%, respectively.

Meanwhile, the supplier deliveries index increased 1.9% to 59.1% and the inventories index went up 3.8%, climbing above the 50% plateau to reach 52.3%. The prices index shot up to 72.7%, marking a 4.4% jump from December. That indicates that raw material prices increased for the 23rd consecutive month.

“Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion, employment expanding at a slower rate, order backlogs expanding at a faster rate and export orders and imports continuing to grow faster in January,” said Timothy R. Fiore, chair of the ISM Manufacturing Business Survey Committee. “Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across all industry sectors. The customers’ inventories index indicates levels are still too low. Capital expenditure lead times increased 8% during the month of January.”

Of the 18 manufacturing industries, 14 reported growth in January including, machinery and transportation equipment. Four industries reported contraction during the period.