According to the latest manufacturing report from the Institute for Supply Management, economic activity in the manufacturing sector expanded in July for the fifth consecutive month, while the overall economy grew for the 86th consecutive month.

Bradley J. Holcomb, the chair of the ISM’s Manufacturing Business Survey Committee released the report and noted that the PMI registered at 52.6%, a decrease of 0.6% from the June reading of 53.2%.

Also falling in July were the employment index and inventories of raw materials. The employment index fell below the 50% threshold to 49.4%, a 1% drop from the June reading of 50.4% and an indication of contraction. Inventories of raw materials, which were contracting in June as well, came in at 49.5%, an increase of 1% from the June reading of 48.5%.

On the positive side, the new orders index registered 56.9% in July, a minimal decrease of 0.1% from the June reading of 57%. The production index registered 55.4%, a 0.7% increase from the June reading of 54.7%.

The prices index registered 55%, a decrease of 5.5% from the June reading of 60.5%, indicating higher raw materials prices for the fifth consecutive month.

Of the 18 reporting industries, 12 reported an increase in new orders in July (same as in June), and nine of 18 industries reported an increase in production in July, down from 12 in June.