Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 96th consecutive month, according to the most recent report from the Institute for Supply Management.

With a reading of 54.9%, the May PMI registered an 0.1% increase over April’s reading. The new orders index rose 2% to 59.5%, but the production index slipped by 1.5% to 57.1%.

Meanwhile, the employment index earned a 1.5% gain from April’s reading (52%), rising to 53.5%. The inventories index also experienced growth, although by a slimmer 0.5% margin, finishing at 51.5%.

The changes to those indices was marginal compared to the prices index, which fell from 68.5% in April to 60.5% in May. This means although raw materials prices were higher for the 15th-straight month, they rose at a slower rate.

“Comments from the panel generally reflect stable to growing business conditions, with new orders, employment and inventories of raw materials all growing in May compared to April,” said Timothy R. Fiore, chair of the ISM manufacturing business survey committee. The slowing of pricing pressure, especially in basic commodities, should have a positive impact on margins and buying policies as this moderation moves up the value chain.”

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